In Using Microsoft^© Excel to Calculate NPV of a Capital

question 50

Short Answer

In using Microsoft^© Excel to calculate NPV of a capital investment, the following data was input:
$\begin{array}{|c|c|c|c|c|c|c|}\hline & \mathbf{A} & \mathbf{B} & \mathbf{C} & \mathbf{D} & \mathbf{E} & \mathbf{F} \\\hline \mathbf{1} & & 1-1-10 & 2010 & 2011 & 2012 & 2013 \\\hline \mathbf{2} & \text { Cash flows } & -46,000 & 12.600 & 18,500 & 21,500 & 10,500 \\\hline\end{array}$
Which choice is a correct format in which to enter into the NPV wizard if the discount rate is 9.72%?
$\quad\text { Rate \quad\quad Value1\quad\quad Value2 \quad Value3\quad value4 \quad value5 }$
A. $\quad 9.72 \quad \quad 12,600 \quad\quad 18,500 \quad 21,500 \quad 10,500\quad 0$
B. $\quad 0.972 \quad\quad 12,600 \quad\quad 18,500 \quad 21,500 \quad 10,500 \quad 0$
C. $\quad 9.72 \quad -46,000 \quad\quad 12,600 \quad 18,500 \quad 21,500 \quad10,500$
D. $\quad 0.0972\quad12,600\quad\quad18,500\quad21,500\quad10,500\quad0$

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Definitions:

Lawrence Kohlberg

An American psychologist best known for his theory of stages of moral development.

Moral Dilemmas

Situations in which a difficult choice has to be made between two or more actions, each of which entails violating some ethical principle.

Moral Development

The process through which individuals develop proper attitudes and behaviors toward other people in society, based on social and cultural norms, rules, and laws.

Zone of Proximal Development

A concept in developmental psychology referring to the difference between what a learner can do without help and what he or she can achieve with guidance and encouragement from a skilled partner.