You are the president of a company deciding whether or not to build a new factory. The factory is expected to cost $8 million to build, and will yield benefits of $68 million in 22 years. The current annual interest rate is i = 5%. What is the Present Value of the factory's benefits? Round your answer to two (2) decimal places. The units are "million dollars" Your Answer:
You are the president of a company deciding whether or not to build a new factory. The factory is expected to cost $8 million to build, and will yield benefits of $68 million in 22 years. The current annual interest rate is i = 5%. What is the Present Value of the factory's benefits? Round your answer to two (2) decimal places. The units are "million dollars" Your Answer:
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
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Transcribed Image Text:You are the president of a company deciding whether or not to build a new factory. The factory is expected to cost $8
million to build, and will yield benefits of $68 million in 22 years. The current annual interest rate is i = 5%. What is the
Present Value of the factory's benefits? Round your answer to two (2) decimal places. The units are "million dollars" Your
Answer:
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