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Using a time line The financial manager at Starbuck Industries is considering an investment that requires an initial outlay of $26,000 and is expected to

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Using a time line The financial manager at Starbuck Industries is considering an investment that requires an initial outlay of $26,000 and is expected to produce cash inflows of $1,000 at the end of year 1, $7,000 at the end of years 2 and 3, $10,000 at the end of year 4, $7,000 at the end of year 5, and $6,000 at the end of year 6. a. Select the time line option that represents the cash flows associated with Starbuck Industries' proposed investment. b. Which of the approachesfuture value or present valuedo financial managers rely on most often for decision making? Why? a. Which of the following time lines correctly represents the cash flows associated with Starbuck Industries' proposed investment? (Select the best answer below.) O A. $26,000 $1,000 $7,000 $7,000 $10,000 $7,000 $6,000 0 1 2 3 4 5 6 O B. $26,000 - $1,000 - $7,000 - $7,000 - $10,000 - $7,000 - $6,000 0 2 3 4 5 6 O c. $6,000 $7,000 $10,000 $7,000 $7,000 $1,000 - $26,000 0 1 2 3 4 5 6 OD. - $26,000 $1,000 $7,000 $7,000 $10,000 $7,000 $6,000 0 1 2 3 4 5 6

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