Net present value of the factory


A factory costs $800,000. You reckon that it will produce an inflow after operating costs of $170,000 a year for 10 years. If the opportunity cost of capital is 14 percent, what is the net present value of the factory? What will the factory be worth at the end of five years?

Solution Preview :

Prepared by a verified Expert
Finance Basics: Net present value of the factory
Reference No:- TGS0676578

Now Priced at $10 (50% Discount)

Recommended (96%)

Rated (4.8/5)