MsCard Bought an Investment That Will Generate the Following Cash

question 33

Multiple Choice

Ms.Card bought an investment that will generate the following cash flows over a three-year period.Use Appendix A. If Ms.Card's marginal tax rate over the three-year period is 40% and she uses a 6% discount rate,compute the NPV of the transaction (round the final answer to the nearest whole dollar) .

• A)$94,129
• B)$84,964
• C)$62,373
• D)None of the above.

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Definitions:

Accounts

Recordings within financial accounting that track specific types of transactions, such as assets, liabilities, equity, expenses, and income.

Journal

A comprehensive record of all financial transactions of a business, listed in chronological order.

Trial Balance

A bookkeeping worksheet in which the balances of all ledgers are compiled into debit and credit columns to ensure a company's bookkeeping system is mathematically correct.

Transactions

Financial activities that involve the exchange of assets, services, or liabilities between two parties.