On January 15, 2007, Flynn Corp Flynn Should Make Four Annual Deposits of
A)$711,618

question 24

Multiple Choice

On January 15, 2007, Flynn Corp.adopted a plan to accumulate funds for environmental improvements beginning July 1, 2011, at an estimated cost of $4,000,000.Flynn plans to make four equal annual deposits in a fund that will earn interest at 10% compounded annually.The first deposit was made on July 1, 2007.Future value factors are as follows: $\begin{array}{l}\text { Future value of } 1 \text { at } 10 \% \text { for } 5 \text { periods } &1.61\\\text { Future value of ordinary annuity of } 1 \text { at } 10 \% \text { for } 4 \text { periods } &4.64\\\text { Future value of annuity due of } 1 \text { at } 10 \% \text { for } 4 \text { periods }&5.11\end{array}$ Flynn should make four annual deposits of

• A)$711,618.
• B)$782,779.
• C)$862,069.
• D)$1,000,000.

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Definitions:

Common Stock

A form of investment indicating a stake in a corporation, which bestows upon its owners the right to vote and receive a portion of the company's earnings through dividends.

Net Cash

The amount of cash available after deducting cash outflows from cash inflows.

Investment Activity

Investment activity involves the allocation of capital to assets or projects with the expectation of generating future returns, contributing to a company's growth or financial health.

Days' Sales in Inventory

A financial ratio that shows the average number of days a company holds its inventory before selling it.