The Purple Lion Beverage Company expects the following cash flows from its manufacturing plant in Palau...
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The Purple Lion Beverage Company expects the following cash flows from its manufacturing plant in Palau over the next five years: Year 1 $250,000 Annual Cash Flows Year 3 $180,000 Year 2 $37,500 Year 4 $300,000 Year 5 $550,000 The CFO of the company believes that an appropriate annual Interest rate on this Investment is 6.5%. What is the present value of this uneven cash flow stream, rounded to the nearest whole dollar? (Note: Do not round your intermediate calculations.) The Purple Lion Beverage Company expects the following cash flows from its manufacturing plant in Palau over the next five years: Year 1 $250,000 Annual Cash Flows Year 3 $180,000 Year 2 $37,500 Year 4 $300,000 Year 5 $550,000 The CFO of the company believes that an appropriate annual Interest rate on this Investment is 6.5%. What is the present value of this uneven cash flow stream, rounded to the nearest whole dollar? (Note: Do not round your intermediate calculations.)
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Related Book For
Financial and Managerial Accounting the basis for business decisions
ISBN: 978-0078111044
16th edition
Authors: Jan Williams, Susan Haka, Mark Bettner, Joseph Carcello
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