Explore BrainMass

Explore BrainMass

    Net present value of the factory

    This content was COPIED from BrainMass.com - View the original, and get the already-completed solution here!

    The factory purchased cost $400,000. The estimated inflow for year one is $120,000, year two $180,000 and year 3 $300,000. There is discount rated at 12 percent. What is the formula for time value of this situation?

    © BrainMass Inc. brainmass.com June 3, 2020, 7:02 pm ad1c9bdddf

    Solution Preview

    We will find the net present value of the factory= Initial outlay-Present ...

    Solution Summary

    The solution provides the steps to calculate the net present value of the factory