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Using a time line The financial manager at Starbuck Industries is considering an investment that requires an initial outlay of ​$27 comma 000 and is expected to produce cash inflows of ​$2 comma 000 at the end of year​ 1, ​$6 comma 000 at the end of years 2 and​ 3, $ 10 comma 000 at the end of year​ 4, ​$7 comma 000 at the end of year​ 5, and ​$6 comma 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 approacheslong dashfuture value or present valuelong dashdo financial managers rely on most often for decision​ making? Why?

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Answer:

Please check the attached image for a picture of the timeline

Present value

This is because financial managers are making decisions at the beginning of the projects. So, it is important to know if the project is successful in the present.

Explanation:

A timeline is shows events in a chronological order. The cash flows have to be arranged in accordance to the years they occurred and according to the timing of the cash flows.

I hope my answer helps you

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