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Paper Flyer Co. expects the following cash flows from its manufacturing plant in India over the next 6 years Year Annual Cash Flows 1 $5,000,000
Paper Flyer Co. expects the following cash flows from its manufacturing plant in India over the next 6 years
Year | Annual Cash Flows |
---|---|
1 | $5,000,000 |
2 | $2,750,000 |
3 | $3,750,000 |
4 | $6,400,000 |
5 | $6,800,000 |
6 | $4,500,000 |
The CFO of the company believes that an appropriate annual interest rate on this investment is 7.5%. What is the present value of this uneven cash flow stream ?
$15,921,988
$29,200,000
$22,494,179
$22,700,000
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