Asked Feb 2, 2020

A factory costs $320,000. You forecast that it will produce cash inflows if $100,000 in a year, $160,000 in year 2, and $260,000 in year 3. The discount rate is 10%.

what is the value if the factory?


Expert Answer

Step 1

The value of factory can be determined with the help of below expression:

Finance homework question answer, step 1, image 1

Step 2

Factory value is calculated below:

Finance homework question answer, step 2, image 1


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