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A series of cash flows may not always necessarily be an annuity. Cash flows can also be uneven and variable in amount, but the concept
A series of cash flows may not always necessarily be an annuity. Cash flows can also be uneven and variable in amount, but the concept of the time value of money will continue to apply. Consider the following case: 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 2 Year 3 Year 4 $37,500 $480,000 $300,000 O $1,650,000 The CFO of the company believes that an appropriate annual interest rate on this investment is 4%. What is the present value of this uneven cash flow stream, rounded to the nearest whole dollar? O $767,500 $2,167,500 Year 5 $550,000 $1,410,275 HOYA A series of cash flows may not always necessanly be an annuiby, Cash flows can also be uneven and variable in amount, but the concept of the time value of money weill crintinue to npgiy. Contider the following caiel The Purple Lion Beverage Company expects the follewing cash flows from its manulacturing plant in Palau over the nexe five rearst The CFO of the compeny believet that an approperate annual interest rate an thai inveitument is 4%. What in the present value of thia ineven cash flow strewn, rounded to the neveat whole dolian? $1.650.000 $767500 12.667 .500 11, 1010,275
A series of cash flows may not always necessarily be an annuity. Cash flows can also be uneven and variable in amount, but the concept of the time value of money will continue to apply. Consider the following case: 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 2 Year 3 Year 4 $37,500 $480,000 $300,000 O $1,650,000 The CFO of the company believes that an appropriate annual interest rate on this investment is 4%. What is the present value of this uneven cash flow stream, rounded to the nearest whole dollar? O $767,500 $2,167,500 Year 5 $550,000 $1,410,275 HOYA
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