Present and Future Value Tables of $1 at 3% Are

question 37

Multiple Choice

Present and future value tables of $1 at 3% are presented below:

-At the end of the next four years, a new machine is expected to generate net cash flows of $8,000, $12,000, $10,000, and $15,000, respectively. What are the (rounded) cash flows worth today if a 3% interest rate properly reflects the time value of money in this situation?

• A) $41,556.
• B) $39,982.
• C) $32,400.
• D) $38,100.

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