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Using a time line The financial manager at Starbuck Industries is considering an investment that requires an initial outlay or $30,000 and is excepted to
Using a time line The financial manager at Starbuck Industries is considering an investment that requires an initial outlay or $30,000 and is excepted to result if cash inflows, of 3,000 at the end of year 1, $5,000 at the end of the years 2 and 3, $12,000 at the end of the year 4 $8,000 at the end of year 5, and $5,000 at the end of year 6. a. Select the time option that represents the cash flow associated with Starbuck Industries b. Which of the approaches future value or present value do managers rely on most often for decision making? Why? c. Which of the following time lines correctly represents the cash flows associated with Starbuck Industries proposed investment? (Select the best answer below.) A. $30,000 -$3,000 -$5,000 -$12,000 -$8,000 -$6,000 B. $30,000 $3,000 $5,000 $5.,000 $12,000 $8.000 $6,000 C. $5,000 $8,000 $12,000 $8,000 $3,000 -$30,000 D. -$30,000 $3,000 $5,000 $4,000 $12,000 $8,000 $8,000
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