Monster Beverage is considering purchasing a new canning machine.

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

Required return = 11.5%

year 0-1

Cash flow $-3,500,000 $1,000,000 $1,200,000 $1,300,000 $900,000 $1,000,000

discounted cash flow $-3,500,000 $896,861 $965,232 $937,818 $582,295 $580,264

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