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What is the value of the factory

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Reference no: EM132528503

A factory costs $440,000. You forecast that it will produce cash inflows of $140,000 in year 1, $200,000 in year 2, and $340,000 in year 3. The discount rate is 11%.

a. What is the value of the factory? (Do not round intermediate calculations. Round your answer to 2 decimal places.)

b. Is the factory a good investment?

-Yes

-No

Reference no: EM132528503

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