Explore BrainMass
Share

Applying Time Value

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

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 September 23, 2018, 5:53 am ad1c9bdddf - https://brainmass.com/economics/estimation-and-forecasting/applying-time-value-83358

Solution Summary

Is the factory a good investment? Explain.

$2.19