The NPV (Net Present Value)of a Cash Stream That Is

question 69

Multiple Choice

The NPV (net present value) of a cash stream that is equal to $100 per period for 5 periods with a rate of return of 12% per period would be

• A)$360.48.
• B)$382.98.
• C)$403.73.
• D)$416.51.

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Definitions:

Insurance Expense

The cost incurred by a company to obtain insurance coverage for its operations, assets, or liabilities.

Prepaid Insurance

Prepaid insurance is an asset account representing insurance premiums that have been paid in advance and have not yet expired at the time of a balance sheet report.

Balance Sheet

A summary that presents a business's assets, financial obligations, and the equity held by its shareholders for a specific timeframe.

Adjusting Entry

Journal entries made in the accounting records at the end of an accounting period to allocate income and expenses to the period in which they actually occurred.