Question: a machine costs $ 3 , 5 0 0 , 0 0 0 up front. Required return is 1 2 . 1 % . Cash

a machine costs $3,500,000 up front. Required return is 12.1%. Cash flows are $1,000,000, $1,200,000, $1,300,000, $900,000, and $1,000,000 for the next 5 years respectively. What is the value of year 3 cash flow discounted to the present?

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