Question: Monster Beverage is considering purchasing a new canning machine. This machine costs $3,500,000 up front. Required return =11.7% What is the value of year 3

Monster Beverage is considering purchasing a new canning machine.

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

Required return =11.7%

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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