1. Business
  2. Finance
  3. a factory costs 970000 you reckon that it will produce...

Question: a factory costs 970000 you reckon that it will produce...

Question details

A factory costs $970,000. You reckon that it will produce an inflow after operating costs of $187,000 a year for 15 years.

a. If the opportunity cost of capital is 11%, what is the net present value of the factory?

b. What will the factory be worth at the end of eight years?

Solution by an expert tutor
Blurred Solution
This question has been solved
Subscribe to see this solution