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Anky Beverage Co. expects the following cash flows from its manufacturing plant in Palau over the next four years: Annual Cash Flows (Millions of dollars)
Anky Beverage Co. expects the following cash flows from its manufacturing plant in Palau over the next four years: Annual Cash Flows (Millions of dollars) Year 1 Year 2 Year 3 Year 4 $100 $200 $180 $450 The CFO of the company believes that an appropriate annual interest rate on this investment is 9%. What is the present value of this uneven cash flow stream? $717.86 million $2,005.00 million $480.00 million $1,625.00 million Identify whether the situations described in the following table are examples of uneven cash flows or annuity payments. Uneven Annuity Payments Cash Flows Description Debbie has been donating 10% of her salary at the end of every year to charity for the last three years. Her salary increased by 15% every year in the last three years. You deposit a certain equal amount of money every year into your pension fund. O Amit receives quarterly dividends from his investment in a high-dividend yield, index exchange-traded fund. Aakash borrowed some money from his friend to start a new business. He promises to pay his friend $2,650 every year for the next five years to pay off his loan along with interest. O
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