Question
Consider the following case: The Purple Lion Beverage Company expects the following cash flows from its manufacturing plant in Palau over the next six years:
Consider the following case:
The Purple Lion Beverage Company expects the following cash flows from its manufacturing plant in Palau over the next six years:
Annual Cash Flows
| Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | Year 6 |
| $400,000 | $37,500 | $480,000 | $450,000 | $550,000 | $375,000 |
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?
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Fixed Income Portfolio Analytics A Practical Guide To Implementing Monitoring And Understanding Fixed Income Portfolios
Authors: David Jamieson Bolder
1st Edition
3319126660,3319126679
