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A factory costs $687,860. You forecast that it will produce cash inflows of $484,067 in year 1, $115,000 in year 2, and $180,000 in year 3. The discount rate is 12.00%.
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?
The firm should not investThe firm should invest
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