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What is the value of the factory

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Reference no: EM133122850

Question - A factory costs $510,000. You forecast that it will produce cash inflows of $155,000 in year 1, $215,000 in year 2, and $370,000 in year 3. The discount rate is 11%.

Required -

a. What is the value of the factory?

b. Is the factory a good investment?

Reference no: EM133122850

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