Afactory costs $400,000. you forecast that it will produce cash inflows of $120,000 in year 1, $180,000 in year 2, and $300,000 in year 3. the discount rate is 12%. a. what is the value of the factory? (do not round intermediate calculations. round your answer to 2 decimal places.)

Value of factory =  $64,220

Explanation:

Here, for the given information,

To calculate value of factory we will calculate the Net Present Value.

Net Present Value = Present value of cash inflows - Present value of cash outflow.

Present value of cash outflow = Cost of factory today = $400,000

Discounting factor @ 12% for each year shall be

Year 1 =

Year 2 =

Year 3 =

Therefore, present value of cash inflows =

Net Present Value = Value of factory =  $464,220 - $400,000 = $64,220

answer; ///(d); determining who competes most closely   with whom evaluating whether industry driving forces and competitive pressure favor some strategic groups and hurt others, and ascertaining whether the profit potential of different strategic groups varies due to the strengths and weaknesses in each groups respective market positions;