Find what is the value of the factory

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A factory costs $420,000. You forecast that it will produce cash inflows of $130,000 in year 1, $190,000 in year 2, and $320,000 in year 3. The discount rate is 10%.

Question a. What is the value of the factory? (Do not round intermediate calculations. Round your answer to 2 decimal places.)

Question b. Is the factory a good investment?

Yes
No

Reference no: EM132555032

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