What Is the NPV of the Following Set of Cash

question 81

Multiple Choice

What is the NPV of the following set of cash flows at a discount rate of zero percent? What if the discount rate is 15 percent?

• A)-$41,700; -$8,665.07
• B)-$41,700; $1,208.19
• C)$0; $1,208.19
• D)$2,500; $1,208.19
• E)$2,500; -$8,665.07

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Definitions:

Disbursements

Cash payments made by a business, including those for expenses, loan payments, or distributions to investors.

Employees As Wages

Compensation in the form of money paid to employees for their labor or services.

Independent Internal Verification

An audit process carried out by employees within the company who are not directly involved in the operations being examined, to ensure accuracy and compliance.

Internal Auditors

Professionals who perform audits within an organization to assess the effectiveness of its risk management, control, and governance processes.