You are the president of a company deciding whether or not to build a new factory. The factory is expected to cost $8 million to build, and will yield benefits of $68 million in 22 years. The current annual interest rate is i = 5%. What is the Present Value of the factory's benefits? Round your answer to two (2) decimal places. The units are "million dollars" Your Answer:

You are the president of a company deciding whether or not to build a new factory. The factory is expected to cost $8 million to build, and will yield benefits of $68 million in 22 years. The current annual interest rate is i = 5%. What is the Present Value of the factory's benefits? Round your answer to two (2) decimal places. The units are "million dollars" Your Answer:

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter11: Capital Budgeting Decisions

Section: Chapter Questions

Problem 17EB: Caduceus Company is considering the purchase of a new piece of factory equipment that will cost...

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