Identify the Equation for Calculating the Net Present Value for a Stated

question 20

Multiple Choice

Identify the equation for calculating the net present value for a stated period of time, where Ft = cash flow in period t, and i is the discount rate.

• A) \( \mathrm{NPV}=\sqrt{\frac{\sum_{t=0}^{n} \mid \frac{F_{\mathrm{t}}+i}{2}}{n}} \)
• B) \( \mathrm{NPV}=\sum_{t-0}^{n} F_{t}(1+i)^{t} \)
• C) \(\mathrm{NPV}=\sum_{t-0}^{n} \frac{F_{t}}{(1+i)^{t}} \)
• D) \( \mathrm{NPV}=\sum_{t-0}^{n} \frac{F^{t}}{i} \sqrt{(1+i)^{t}} \)

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