A factory costs $400,000. You forecast that it will produce cash inflows of $120,000 in Year 1, $180,000 in Year 2, and $300,000 in Year 3. The discount rate is 12 percent. Is the factory a good investment? Explain.© BrainMass Inc. brainmass.com July 19, 2018, 9:16 pm ad1c9bdddf
Is the factory a good investment? Explain.