Jennifer

So that is the present$-$day value of expected cash flow $3$ years from now?

Maddy Hemby

Yes, Monster expects a $10\mathrm{.}9\%$ annual return on their investments, so we must discount the future cash flows by $10\mathrm{.}9\%$ for every year in the future they occur.

What is the present value of all future cash flows? Note: do not include value of Year $0$ cash flow.

Monster Beverage is considering purchasing a new canning machine. This machine costs $$3,500,000$ up front.

Required return $=10\mathrm{.}9\%$

$\backslash$table$[[$Year$,$Cash Flow,Discounted Cash Flow$],[0,$$$-3,500,000,$$$-3,500,000$