The Present Value of $1,000 Received at the End of Year

question 131

Multiple Choice

The present value of $1,000 received at the end of year 1, $1,200 received at the end of year 2, and$1,300 received at the end of year 3, assuming an opportunity cost of 7 percent, is________ .

• A) $2,500
• B) $6,516
• C) $2,856
• D) $3,043

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Definitions:

Net Requirements Plan

An output of the manufacturing planning process that identifies the quantity and timing of future material or product demands based on current inventory levels and scheduled supply.

MRP II

Manufacturing Resource Planning, an integrated method of operational and financial planning for manufacturing companies, an evolution of Material Requirements Planning (MRP).

MRP

Material Requirements Planning; a system for planning and managing inventory levels, production schedules, and purchasing needs in the manufacturing process.