The Function Where V Is Value and T Is

question 89

Multiple Choice

The function where V is value and t is time in years, can be used to find the value of a printing press during the first 7 years of use. After how many years will the printing press be worth only $45,000?

• A) 8 years, 2 months
• B) 10 years, 5 months
• C) 10 years, 9 months
• D) 7 years, 10 months
• E) 5 years, 11 months

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Definitions:

Net Present Value

A financial metric that calculates the present value of expected future cash flows relative to the initial investment, used to assess the profitability of an investment.

Investment Project

An undertaking requiring capital investments with the aim of generating future returns.

Interest Rate

is the percentage of a loan amount charged by the lender to the borrower for the use of assets.

Net Present Value

A calculation that compares the present value of a project's cash inflows to its cash outflows, used to assess the viability or profitability of an investment.