You Are Paid to Teach Graduate-Level Classes for the University

question 41

Multiple Choice

You are paid to teach graduate-level classes for the university and want to determine how much money the university makes from your graduate-level classes.Based on historical data,you estimate that your graduate classes for the next six years will generate an average annual revenue of $99,850.If you discount these cash flows at an annual rate of 7.30%,what is the present value of the expected cash flows?

• A)$895,133.52
• B)$483,644.36
• C)$471,562.95
• D)$423,786.85

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Definitions:

Finished Goods Inventory

Products that are completed and ready for sale but have not yet been sold.

Cost of Goods Manufactured

This represents the total production cost of goods that are finished and available for sale during a specific accounting period, including materials, labor, and overhead.

Work in Process

Goods that are in the production process but are not yet finished, representing partially completed products.

Finished Goods

Items that have finished the production process and are available for purchase.