Share
Explore BrainMass

Applying Time Value

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.

Solution Summary

Is the factory a good investment? Explain.

$2.19