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Monster Beverage is considering purchasing a new canning machine. This machine costs $3,500,000 up front. Required return = 9.5% Year Cash Flow 0 $-3,500,000 1
Monster Beverage is considering purchasing a new canning machine.
This machine costs $3,500,000 up front.
Required return = 9.5%
Year | Cash Flow |
---|---|
0 | $-3,500,000 |
1 | $1,000,000 |
2 | $1,200,000 |
3 | $1,300,000 |
4 | $900,000 |
5 | $1,000,000 |
What is the value of Year 3 cash flow discounted to the present?
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