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What is the value of Year 3 cash flow discounted to the present? Monster Beverage is considering purchasing a new canning machine. This machine costs
What is the value of Year 3 cash flow discounted to the present? Monster Beverage is considering purchasing a new canning machine. This machine costs $3,500,000 up front. Required return =12.2% Jennifer So that is the present-day value of expected cash flow 3 years from now? Elizabeth Frazee Yes, Monster expects a 12.2% annual return on their investments, so we must discount the future cash flows by 12.2% for every year in the future they occur. What is the present value of all future cash flows? Note: do not include value of Year 0 cash flow. Enter a response then click Submit below $0
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