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The Purple Lion Beverage Company expects the following cash flows from its manufacturing plant in Palau over the next five years: Annual Cash Flows Year
The Purple Lion Beverage Company expects the following cash flows from its manufacturing plant in Palau over the next five years: Annual Cash Flows Year 1 Year 2 Year 3 Year 4 Year 5 $20,000 $180,000 $300,000 $750,000 $250,000 The CFO of the company believes that an appropriate annual interest rate on this investment is 9%. what is the present value of this uneven cash flow stream, rounded to the nearest whole dollar? O $1,085,162 O $1,675,000 $450,000 O $1,875,000 Identify whether the situations described in the following table are examples of uneven cash flows or annuity payments: Annuity Uneven Description Cash Flows Payments Debbie has been donating 10% of her salary at the end of every year to charity for the last three years. Her salary increased by 15% every year in the last three years You deposit a certain equal amount of money every year into your pension fund Amit receives quarterly dividends from his investment in a high-dividend yield, index exchange-traded fund Aakash borrowed some money from his friend to start a new business. He promises to pay his friend $2,650 every year for the next five years to pay off his loan along with interest
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