3 $950,548.79 Correct! Jennifer So that is the present-day value of expected cash flow 3 years from now? Linda Martinez Yes, Monster expects a 11.0% Monster Beverage is considering purchasing a new canning machine. This machine costs $3,500,000 up front. Required return 11.0% Year Cash Flow Discounted Cash Flow 0 $-3,500,000 $-3,500,000 1 $1,000,000 $900,901 annual return on their 2 investments, so we must $1,200,000 3 $1,300,000 discount the future cash flows 4 $900,000 5 $1,000,000 $973,947 $950, 549 $592,858 $593,451 by 11.0% for every year in the future they occur. What is the present value of all future cash flows? Note: do not include value of Year 0 cash flow.