Net Present Value Can Be Calculated for Any Time Period

question 59

Multiple Choice

Net Present Value can be calculated for any time period provided that

• A) both the interest rate and the time period correspond to the period being examined.
• B) the interest rate is stipulated as an annual percentage but the time period corresponds to the period being examined.
• C) the time period is stipulated as an annual period but the interest rate corresponds to the period being examined.
• D) a spreadsheet is used for the calculation since this cannot be computed on a financial calculator.