Question: Monster Beverage is considering purchasing a new canning machine. This machine costs $3,500,000 up front. Required return = 9.5% Year Cash Flow Discounted Cash Flow

Monster Beverage is considering purchasing a new canning machine.

This machine costs $3,500,000 up front.

Required return = 9.5%

Year Cash Flow Discounted Cash Flow
0 $-3,500,000 $-3,500,000
1 $1,000,000 $913,242
2 $1,200,000 $1,000,813
3 $1,300,000 $990,150
4 $900,000 $626,017
5 $1,000,000 $635,228

What is the NPV if the required return were to be 9.5%?

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