What Is the Value on 1/1/14 of the Following Cash

question 17

Multiple Choice

What is the value on 1/1/14 of the following cash flows? Use a 10% discount rate,and round your answer to the nearest $1.00.
Date Cash Received Amount of Cash
1/1/16 $100
1/1/17 $200
1/1/18 $300
1/1/19 $400
1/1/20 $500

• A)$1,500
• B)$880
• C)$968
• D)$1,065

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Definitions:

Kanban System

A lean manufacturing tool that uses visual cues to signal the need to move materials or parts within a production process.

Variability

The extent to which data points in a distribution or set differ from each other and from the mean or average.

Productive System

An arrangement of resources and processes that interact and transform inputs into valuable outputs, such as goods or services.