Problem
Shrewsbury Herbal Products (SHP), an established manufacturer of herbal teas, seasonings, and medicines, is based in central England near the Welsh border. Its merchandise is distributed throughout the United Kingdom and various regions of the Asian continent.
What is the present value of HebohTea, assuming a discount rate of 10%, given that it is anticipated to produce a series of cash flows over the next 9 years, with the initial payment of $200,000 due in 3 years and it being one of the best-selling herbal teas in Southeast Asia for SHP? Please include all calculations.