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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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