A new restaurant expects to generate a $700,000 cash flow in its first year of operation, $1,000,000 in its second, and $1,500,000 million in its third. The cash flows are expected to grow thereafter at a rate of 3.00% per year. The appropriate discount rate is 9.00% per year. Calculate the present value of future cash flows. Round your answer to the nearest whole dollar. For example, $2,371.24 should be entered as 2,371.

$22,525,881

Explanation:

Value after year 3 = (Cash flow for year 3 * Growth rate)/(Discount rate -Growth rate)

Value after year 3 = ($1,500,000*1.03) / (0.09-0.03)

Value after year 3 = $1,545,000 / 0.06

Value after year 3 = $25,750,000

Present value of future cash flows = Cash inflow * Present value of discounting factor(rate%,time period)

PV = $700,000/1.09 + 1,000,000/1.09^2 + 1,500,000/1.09^3 + 25,750,000/1.09^3

PV = 642201.84 + 841679.99 + 1158275.22 + 19883724.62

PV = $22,525,881.67

answer; ///i believe that the correct answer is (post conventional)

c

explanation:

c because the item on a bank statement is also referred to as an account statement. in addition, it provides the beginning balance, ending balance, statement date, transaction date for each transaction, payee, customer name and address, statement period, the account holder's account number, and the bank's customer service number