Item$2$

$7\mathrm{.}14$

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Problem $5-18$ Present Values $($LO$2)$

A factory costs $$460,000.$ You forecast that it will produce cash inflows of $$150,000$ in year $1,$ $$210,000$ in year $2,$ and $$360,000$ in year $3.$ The discount rate is $12\%.$

What is the value of the factory?