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

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

Name: H1. A factory costs 800,000 €. You reckon that it will produce an infl
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Description: H1. A factory costs 800,000 €. You reckon that it will produce an inflow after operating costs of170,000€ a year for ten years.a. If the opportunity cost of capital is 14%, what is the net present value of the factory?b. What will the factory be wort

Intermediate Financial Management (MindTap Course List)

13th Edition

ISBN:9781337395083

Author:Eugene F. Brigham, Phillip R. Daves

Publisher:Eugene F. Brigham, Phillip R. Daves

Chapter12: Capital Budgeting: Decision Criteria

Section: Chapter Questions

Problem 1P: A project has an initial cost of 40,000, expected net cash inflows of 9,000 per year for 7 years,...

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