Moving Cash Flows What Is the Value in Year 6

question 124

Multiple Choice

Moving Cash Flows What is the value in year 6 of a $900 cash flow made in year 4 when the interest rates are 8 percent?

• A)$1,044.00
• B)$1,049.76
• C)$1,332.00
• D)$1,428.19

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Definitions:

Machine Hour

A unit of measurement that represents an hour of operation of a machine or equipment.

Fixed Costs

Expenses that do not change in proportion to the level of production or sales, such as rent and salaries.

High-low Method

A technique used in accounting and finance to estimate fixed and variable costs based on the highest and lowest levels of activity.

Variable Electrical Costs

Costs associated with electricity that vary depending on the amount of usage or consumption over a period.