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The Board Store buys 100,000 board-feed of lumber at a price of $5.99 per board-foot. They expect to sell all the lumber over the course

The Board Store buys 100,000 board-feed of lumber at a price of $5.99 per board-foot. They expect to sell all the lumber over the course of the next 5 months and receive the following cash flows:

Month 1 2 3 4 5
Cash Flow $120,000 $130,000 $140,000 $130,000 $120,000

Is this a good deal for the Board Store?

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Yes, because they receive more than their initial investment back in future cash flows.

No, because the future cash flows are spread over 5 months.

No, because there is uncertainty.

Cannot be determined from the information given.

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