question archive prince was assessing the fesibility of buying a factory
prince was assessing the fesibility of buying a factory
Subject:BusinessPrice: Bought3
prince was assessing the fesibility of buying a factory. he would have to make an upfront payment of $1470000. he would then need to invest $900000 one year from now and $950000 two years from now to upgrade and expand the facilities. the factory would generate net returnss of $380000 from the second year onwards. he planned to sell the factory at the end of eight years for $4000000. if the required rate of return is 15%, should he accept or reject this plan
