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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?
Group of answer choices
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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