I need desperate HELP, Finance question: "Suppose a factory costs $840,000...." iNeedMathHelpLol New member Suppose a factory costs$840,000. You reckon that it will produce an inflow after operating costs of $174,000 a year for 14 years. 1. If the opportunity cost of capital is 10%, what is the net present value of the factory? 2. What will the factory be worth at the end of seven years? HallsofIvy Elite Member How much principle would you have to have so that, investing it at 10% per year, you would bring in as much money as the factory will earn? Denis Senior Member You need to use the present value of an annuity formula: p = a(1 - k) / r where k = 1 / (1 + r)^n a = 174000 n = 14 r = .10 : assumes rate is 10% cpd. annually p = ? Same thing for part 2, except n = 7 Your teacher gave the class that problem and did not give the formula? iNeedMathHelpLol New member You need to use the present value of an annuity formula: p = a(1 - k) / r where k = 1 / (1 + r)^n a = 174000 n = 14 r = .10 : assumes rate is 10% cpd. annually p = ? Same thing for part 2, except n = 7 Your teacher gave the class that problem and did not give the formula? Nope, can you please explain it for me? Usually if I see the answer I can reverse learn it and get it down pat. Thanks Denis Senior Member This is not a classroom; go read up: Anyway, seems to be something wrong with the problem statement: as far as I can tell, the given cost of$840,000 is not required.
What d'you think Halls?

iNeedMathHelpLol

New member
This is not a classroom; go read up:

Anyway, seems to be something wrong with the problem statement:
as far as I can tell, the given cost of \$840,000 is not required.
What d'you think Halls?

Okay, Can you delete the thread? Thanks