Problem:
A report from the marketing department indicates that a new product will generate the following revenue stream: $62,500 in the first year, $89,400 in year two, $136,200 in year three, $128,300 in year four, and $112,000 in year five.
Required:
Question: If your firm's discount rate is 11% and the cash flows are received at the end of each year, what is the present value of this cash flow stream?
Note: Please solve the given numerical and provide appropriate solution.