Determine which of the statements below is correct regarding the present value of an ordinary annuity. Multiple choice question. A present value of an annuity is the amount that would accumulate by the end date of a series of equal payments. The present value of an annuity is the amount that can be invested now at the specified rate to yield a future series of equal periodic payments. We need to calculate how much we will have at a point in time in the future after investing a specific sum of money today at a specific rate.

This exercise illustrates that poor quality can affect schedules and costs. a manufacturing process has 130 customer orders to fill. each order requires one component part that is purchased from a supplier. however, typically, 3% of the components are identified as defective, and the components can be assumed to be independent. (a) if the manufacturer stocks 130 components, what is the probability that the 130 orders can be filled without reordering components? (b) if the manufacturer stocks 132 components, what is the probability that the 130 orders can be filled without reordering components? (c) if the manufacturer stocks 135 components, what is the probability that the 130 orders can be filled without reordering components?