It costs $800,000, it will produce an inflow after operating costs of $170,000 a year for 10 years. Opportunity costs of capital is 14%..Whats the NPV of factory, and what will the building be worth after the end of 5 years?
I understand it produces a set 170,000 a year so you could just run the present value after each year. But is this a shorter or way to do it? What would the answer be either way? Thanks alot.