How much is pablo vending machine worth

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Pablo owns a vending machine that has a cost of capital of 12.59 percent. The vending machine is expected to produce annual cash flows of 40,728 dollars for 7 years. The first annual cash flow of 40,728 dollars is expected later today. In addition to the annual cash flows of 40,728 dollars, the vending machine is also expected to produce a special, one-time cash flow of 53,500 dollars in 3 years from today. How much is Pablo's vending machine worth?

Reference no: EM132466153

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