What Is the Net Present Value for a $55,000 Investment

question 28

Multiple Choice

What is the net present value for a $55,000 investment (−$55,000 in year zero) and cash inflows of $20,000 per year for years 1 through 4, using a 4% discount rate?

• A) $16,921.06
• B) $25,000
• C) −$25,000
• D) −$16,921.06

---

Definitions:

Write Concisely

The skill of expressing ideas or viewpoints clearly and with few words, without losing the intended message.

Rules of Composition

Guidelines used in visual arts and photography that govern the arrangement of elements within a piece to achieve a harmonious and aesthetically pleasing outcome.

Upward Communication

The flow of information from lower levels of a hierarchy to higher levels, crucial for feedback, decision-making, and maintaining an informed leadership.

Communication Plan

A strategic document that outlines how communication will be managed and executed within a project, organization, or campaign.