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

question 2

Multiple Choice

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

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

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Definitions:

Ordinary Bailment

A legal relationship where physical possession of personal property is transferred from one person to another, but ownership is not.

Bailee

A person or entity to whom goods are entrusted for a specified purpose by the bailor.

Bailed Property

Items temporarily entrusted to another person under a bailment agreement, where the recipient (bailee) is obligated to return them or manage them in a particular way.

Exculpatory Clause

A contract term that releases one party from liability for wrongful acts or negligence.