1. Swanky Beverage Co. expects the following cash flows from its manufacturing plant in Palau over the next 5 years:
|
Year
|
Annual Cash Flows
|
|---|---|
| 1 | $4,100,000 |
| 2 | $2,900,000 |
| 3 | $3,000,000 |
| 4 | $6,600,000 |
| 5 | $5,600,000 |
- $14,668,080
- $26,200,000
- $17,841,473
- $12,806,365
2. Identify whether the situations described in the following table are examples of uneven cash flows or
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You recently moved to a new apartment and signed a contract to pay monthly rent to your landlord for a year
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SOE Corp. hires an average of 10 people every year and matches the contribution of each employee toward his or her retirement fund.
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Franklinia Venture Capital (FVC) invested in a budding entrepreneur’s restaurant. The restaurant owner promises to pay FVC 10% of the profit each month for the next 10 years.
-
You have committed to deposit $600 in a fixed interest–bearing account every quarter for four years.
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