Monster Beverage is considering purchasing a new canning machine.

This machine costs $$3,500,000$ up front.

Required return $=11\mathrm{.}7\%$

What is the value of year $3$ cash flow discounted to the present?

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$