What Is the Excel Formula to Compute the Net Present

question 1

Multiple Choice

What is the Excel formula to compute the net present value for an initial $53,000 investment and cash inflows of $17,000 per year for years 1 through 4 with a 10% cost of capital?

• A) =NPV(0.1,53000,−17000,−17000,−17000,−17000)
• B) =NPV(0.1, 17000,17000,17000,17000,−53000)
• C) =NPV(−53000,17000,17000,17000,17000)
• D) =NPV(0.1,−53000,17000,17000,17000,17000)

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Definitions:

Employer's Payroll Taxes

These are taxes that employers are required to pay on behalf of their employees, including Social Security and Medicare taxes in the United States.

Pension Rights

The entitlements employees earn towards future pension benefits as a result of their employment.

Vacation Privileges

Benefits or allowances offered by employers to employees, allowing paid time off from work for personal leisure or rest.

Operations

The activities involved in the day-to-day running of a business for the purpose of producing value for the stakeholders.