Find the Future Value at the End of Year 3

question 36

Multiple Choice

Find the future value at the end of year 3 of the following stream of cash flows received at the end of each year,assuming the firm can earn 8 percent on its investments.

• A)$51,780
• B)$39,248
• C)$47,944
• D)$40,981

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Definitions:

Input

Resources used in the production process to produce goods or services, such as labor, raw materials, and capital.

Output

The amount of goods or services produced by a company, industry, or economy.

Function

A relation between a set of inputs and a set of permissible outputs, typically defined by a rule that every input is related to exactly one output.

Production Function

A mathematical model that describes the relationship between inputs used in production and the output generated from those inputs.