Question

It will cost you $840,000 to buy a factory. Your research shows that it will payoff...

It will cost you $840,000 to buy a factory. Your research shows that it will payoff $210,000 at the end of each year for 10 years. You are a smart person so your opportunity cost of capital is 14%.

What is the NPV of the factory?

What could you sell the factory for after 5 years?

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