What Is the Present Value of These Cash Flows,if the Discount

question 18

Multiple Choice

What is the present value of these cash flows,if the discount rate is 10% annually?

• A) $18,380.00
• B) $12,620.90
• C) $22,358.69
• D) $14,765.52

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Definitions:

Raw Materials Inventory

Items and components stored for future use in the production process, not yet modified or incorporated into a finished product.

Cost of Goods Manufactured

The total production cost of goods that have been completed over a specific period, including labor, materials, and overhead.

Year

A period of 365 days (or 366 days in a leap year) used for calculating time in the Gregorian calendar.

Calculate

A mathematical determination of one or more quantities, equations, or properties.