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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