Given the Following Information, Calculate the NPV for This Property

question 21

Multiple Choice

Given the following information, calculate the NPV for this property. Initial cash outflow: $200,000, Discount rate: 15%, CF for year 1: $25,876, CF for year 2: $23,998, CF for year 3: $23,013, CF for year 4: $22,105, CF for year 5: $144,670.

• A) -$51,875
• B) -$59,657
• C) $140,343
• D) $295,951

---

Definitions:

SUM(range)

A mathematical function that adds together all numbers in a specified range.

Add Values

The operation of performing addition to increase or combine numeric quantities.

Ratio Scale

A quantitative scale of measurement that includes a defined zero point, equal intervals, and the ability to express quantities as multiples of one another.

A Process

A sequence of measures or procedures followed to attain a specific goal.