Author Question: The basic motives for capital expenditures are to expand operations, to replace or renew fixed ... (Read 14 times)

brutforce · **on:** Jul 10, 2018

The basic motives for capital expenditures are to expand operations, to replace or renew fixed assets, or to obtain some other, less tangible benefit over a long period.

Indicate whether the statement is true or false

Question 2

100 is received at the beginning of year 1, 200 is received at the beginning of year 2, and 300 is received at the beginning of year 3. If these cash flows are deposited at 12 percent, their combined future value at the end of year 3 is ________.

A) 1,536
B) 672
C) 727
D) 1,245