Solution-You reckon that it will produce an inflow after

You reckon that it will produce an inflow after operating

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Reference no: EM13567281

1. A factory costs $800,000. You reckon that it will produce an inflow after operating costs of $170,000 a year for 10 years. If the opportunity cost of capital is 14%, what is the net present value of the factory? What will the factory be worth at the end of five years?

2. A machine costs $380,000 and is expected to produce the following cash flows:

Year	1	2	3	4	5	6	7	8	9	10
Cash flow($000s)	50	57	75	80	85	92	92	80	68	50

If the cost of capital is 12%, what is the machine's NPV?

Reference no: EM13567281

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You reckon that it will produce an inflow after operating

Reference no: EM13567281

Reference no: EM13567281

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