What Is the Net Present Value of the Following Cash $$\frac { \mathrm { t } = 0 } { - 120,000 } \quad \frac { \mathrm { t } = 1 } { 300,000 } \quad - \frac { \mathrm { t } = 2 } { - 100,000 }$$

question 13

Multiple Choice

What is the net present value of the following cash flow at a discount rate of 11%?
$$\frac { \mathrm { t } = 0 } { - 120,000 } \quad \frac { \mathrm { t } = 1 } { 300,000 } \quad - \frac { \mathrm { t } = 2 } { - 100,000 }$$

• A) $69,108.03
• B) $231,432.51
• C) $80,000
• D) None of the above

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Definitions:

Common Stock

A type of equity security that represents ownership in a corporation, with holders typically having voting rights and potentially receiving dividends.

Balance Sheet

An exposition on a company's assets, its financial responsibilities, and the equity owned by shareholders, documented at a fixed point in time.

Total Revenue

The overall amount of money generated by a company from its business activities, before any expenses are subtracted.

Total Expenses

The sum of all costs and expenses incurred by a business during a given period, including operating and non-operating expenses.