What Is the Net Present Value of the Following Set

question 47

Multiple Choice

What is the net present value of the following set of cash flows at a discount rate of 6 percent? At 12 percent?

• A)$17,586; $10,332.46
• B)$16,235.26; $7,693.47
• C)-$1,190.80; -$6,287.92
• D)$15,316.29; $6,869.17
• E)$17,220.90; $8,673.98

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Definitions:

Type I Error

The mistake of rejecting the null hypothesis when it is actually true, often referred to as a "false positive."

Innocent Person

An individual who has not committed the crime or offense they are accused of.

Criminal Trial

A legal proceeding in which a person accused of committing a crime is tried in a court, judged, and then sentenced if found guilty.

Error Probability

The likelihood of making an incorrect decision or inference in a statistical test.