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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 $180,000 $300,000 $350,000 $375,000 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? O $1,303,317 $617,500 O $1,642,500 O $1,425,000
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