Check my work mode : This shows what is correct or incorrect for the work you ha

Question

Check my work mode : This shows what is correct or incorrect for the work you have completed so far. It does not indicate completion. Return to question A factory costs $290,000. You forecast that it will produce cash inflows of $85,000 in year 1, $145,000 in year 2, and $230,000 in year 3, The discount rate is 10%. a. What is the value of the factory? (Do not round intermediate calculations. Round your answer to 2 decimal places.) 10 points 8 Answer is complete but not entirely correct. Value of the factoryHRRA(79,907 21) b. Is the factory a good investment? Yes No KPrev 11 of 25 i Next >

Explanation / Answer

a.

value of the factory

=-290000+85000/(1+10%)^1+145000/(1+10%)^2+230000/(1+10%)^3

=79909.84

b.

yes, because NPV is higher than 0

the above is answer..

Related Questions

Navigate

• Browse (All)
• Browse C
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.