1. A set of cash flows begins at $50,000 the first year, then decreases each year until n = 10 years. If the interest rate is 10% and the annual cash flow decrease is 7%, what is the present value of the cash flow?
A) $530,879
B) $402,630
C) $239,236
D) $241,985
2. Which of the following is not critical for an MRP system to work?
Carefully designed software
Carefully set up hardware
Extremely accurate input records
Simplified product designs
Extensive training for users