Solution-What will the factory be worth after five years

What will the factory be worth after five years

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Reference no: EM132916193

A factory costs $800,000. You think it will produce a net cash inflow of $170,000 a year for 10 years.

Problem (a) If the discount rate is 14%, is it a good idea to buy the factory for the $800,000 asking price?

Problem (b) What will the factory be worth after 5 years, in other words, what is the price that you can sell the factory for at the end of period 5?

Reference no: EM132916193

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What will the factory be worth after five years

Reference no: EM132916193

Reference no: EM132916193

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