A factory costs $280,000. You forecast that it will produce cash inflows of $80,000 in year 1, $140,000 in year 2, and $220,000 in year 3.
A factory costs $280,000. You forecast that it will produce cash inflows
of $80,000 in year 1, $140,000 in year 2, and $220,000 in year 3. The discount rate is 12%.
a. What is the value of the factory? Round 2 decimals
Value of the factory: