A series of cash flows may not always necessarily be an annuity. Cash flows can also be uneven and variable in amount, but the concept of the time value of money will continue to apply. Consider the following case: 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
$100,000 $20,000 $480,000 $450,000 $550,000

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?

a. $1975000
b. $600,000
c. $1,775,000
d. $1,395,097

A series of cash flows may not always necessarily be an annuity. Cash flows can also be uneven and variable in amount, but the concept of the time value of money will continue to apply. Consider the following case:

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

$100,000 $20,000 $480,000 $450,000 $550,000

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?

a. $1975000

b. $600,000

c. $1,775,000

d. $1,395,097

Explanation:

a. my answers

there's 11 people for the 1st position. then, no matter who gets it, there's only 10 left for the second, and then 9 left for the third. 11 x 10 x 9 = 990.   the answer is there are 990 different ways the positions can be filled by these applicants

answer90,000;