11. Uneven cash flows 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 six years: The CFO of the company believes that an appropriate annual interest rate on this investment is 6.5%. What is the present value of this unen flow stream, rounded to the nearest whole dollar? $2,025,000$1,694, 292$467,500$2,242,500Perpetuities are also called annuities with an extended or unlimited life. Based on your understanding of perpetuities, answer the following questions. Which of the following are characteristics of a perpetuity? Check all that apply. A perpetuity is a stream of unequal cash flows. A perpetuity is a stream of regularly timed, equal cash flows that continues forever. The value of a perpetuity is equal to the sum of the present value of its expected future cash flows. The current value of a perpetuity is based more on the discounted value of its nearer (in time) cash flows and less by the discounted value of its more distant (in the future) cash flows. A local bank's advertising reads: "Give us $50,000 today, and we'll pay you $800 every year forever." If you plan to live forever, what annual interest rate will you earn on your deposit? 2.56% 1.60%1.44%1.28% Oops! When you went in to make your deposit, the bank representative said the amount of required deposit reported in the advertisement was incorrect and should have read $75,000. This revision, which will the interest rate earned on your deposited funds, will adjust your earned interest rate to.