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    Net present value of the factory

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    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?

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

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