Question: Monster Beverage is considering purchasing a new canning machine. This machine costs $3,500,000 up front. Required return = 11.3% What is the value of year

Monster Beverage is considering purchasing a new canning machine. This machine costs $3,500,000 up front. Required return = 11.3%

What is the value of year 3 cash flow discounted to the present?

Year

Cash Flow

0

$-3,500,000

1

$1,000,000

2

$1,200,000

3

$1,300,000

4

$900,000

5

$1,000,000

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