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    Applying Time Value

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    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.

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    https://brainmass.com/economics/estimation-and-forecasting/applying-time-value-83358

    Solution Summary

    Is the factory a good investment? Explain.

    $2.19