What Is the Net Present Value (NPV) of the Following

question 34

Multiple Choice

What is the net present value (NPV) of the following cash flows at a discount rate of 9%?
$\begin{array}{cccc} \underline{ \text { t=0} } & \underline{ \text { t=1} } & \underline{ \text { t=2} } & \underline{ \text { t=3} } \\-250,000&100,000&150,000&200,000\end{array}$

• A) $122,431.81
• B) $200,000
• C) $155,950.68
• D) None of the above

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Definitions:

Response

A reaction to a specific stimulus or situation, which can be psychological, physiological, or behavioral.

Delay

The act of postponing or holding off an event, action, or operation.

Avoidance Conditioning

A learning process in which an individual learns to prevent the occurrence of a negative or unpleasant outcome.

Classical Conditioning

An instructive procedure where two stimuli are regularly associated, causing a response at first provoked by the second stimulus to later be provoked by the first stimulus exclusively.