Folic acid manufacturing is a competitive business. A new plant costs $100,000 and lasts three years. The plant's cash flow is as follows: Year 1: +$43,300, Year 2: +$43,300, and Year 3 = +$58,300. (Assume no taxes.) If the discount rate is 20%, what is the value of the plant at the end of year 1?

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To calculate value of plant at the end of year 1 we need to find its present ... View the full answer