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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 four years:
Consider the following case: The Purple Lion Beverage Company expects the following cash flows from its manufacturing plant in Palau over the next four years: Annual Cash Flows Year 1 Year 2 Year 3 Year 4 $250,000 $20,000 $330,000 $300,000 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 $600,000 O $2,200,000 O $758,762 O $1,850,000 Identify whether the situations described in the following table are examples of uneven cash flows or annuity payments: Uneven Annuity Description Cash Flows Payments 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 She tund, Editi Amit receives quarteriy dividends from his investment in a high-dividend yield, index exchange-traded fund
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