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:

Theories

Theories are systematic frameworks composed of concepts and propositions intended to explain phenomena by specifying relations among variables, providing a coherent set of guidelines for understanding and predicting behavior or events.

Hypotheses

Proposed explanations for a phenomenon, set forth as a starting point for further investigation or experimentation.

Phenomenon

Phenomenon refers to an observable event, fact, or circumstance that can be scientifically investigated to gain understanding or evidence about it, often used to describe unusual or remarkable occurrences.

Social Support Theory

A theory that suggests support from social networks has positive effects on an individual's health and well-being.