Question: Applying Time Value Factor A factory costs $793,625 . You forecast that it will produce cash inflows of $649,220 in year 1,$175,000 in year 2
Applying Time Value Factor\ A factory costs
$793,625. You forecast that it will produce cash inflows of
$649,220in\ year
1,$175,000in year 2 , and
$310,000in year 3 . The discount rate is
14.50%.\ a. Calculate the PV of cash inflows. (Do not round intermediate calculations. Round\ your answer to 2 decimal places.)\ Present\ value\ b. Should the company invest in the factor?\ (Click to select)

Applying Time Value Factor A factory costs $793,625. You forecast that it will produce cash inflows of $649,220 in year 1,$175,000 in year 2 , and $310,000 in year 3 . The discount rate is 14.50%. a. Calculate the PV of cash inflows. (Do not round intermediate calculations. Round your answer to 2 decimal places.) b. Should the company invest in the factor
Step by Step Solution
There are 3 Steps involved in it
Get step-by-step solutions from verified subject matter experts
