What Is the Present Value of the Following Mixed Cash

question 39

Multiple Choice

What is the present value of the following mixed cash flow stream if interest is 6% (rounded) ? $$\begin{array} { | l | l | } \hline \text { YEAR } & \text { CASH FLOW } \\\hline 1 & \$ 5,000 \\\hline 2 & \$ 8,000 \\\hline 3 & \$ 9,500 \\\hline\end{array}$$

• A) $25,370
• B) $19,813
• C) $21,225
• D) $18,750

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Definitions:

Perpetual Systems

Inventory management systems that continuously update the record of inventory levels with each sale or purchase, providing real-time information.

Inventory Purchases

Transactions made by a business to acquire goods intended for sale during the normal course of operations.

Cost of Goods Sold

Direct costs attributable to the production of the goods sold by a company, including the cost of materials and labor.