Using a time line The financial manager at Starbuck Industries is considering an investment that requires an initial out

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Using A Time Line The Financial Manager At Starbuck Industries Is Considering An Investment That Requires An Initial Out 1 (12.46 KiB) Viewed 61 times

Using a time line The financial manager at Starbuck Industries is considering an investment that requires an initial outlay of $27,000 and is expected to produce cash inflows of $3,000 at the end of year 1, $5,000 at the end of years 2 and 3, $12,000 at the end of year 4, 59,000 at the end of year 5, and $8,000 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 approaches—future value or present value—do financial managers rely on most often for decision making? Why?