A Company Has the Following Net Cash Inflows

question 65

Multiple Choice

A company has the following net cash inflows. Today -$7000, Year 1 -$15 000, Year 2 -$9000, Year 3 + $12 000, Year 4 -$3000, Year 5 + $19 000. Compute the net present value if the required rate of return is 7.22% compounded annually.

• A) -$4709.89
• B) -$3000.00
• C) -$7009.89
• D) -$7409.89
• E) $4709.89

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Definitions:

Alternatives

Other options or choices available in a given situation, allowing for flexibility in decision-making or strategy planning.

Across Cultures

Pertains to interactions or comparisons involving different cultures or societies, highlighting differences and similarities.

Symbol of Love

An object or sign that represents affection or care towards others.

Variable Interval

A schedule of reinforcement where a response is rewarded after an unpredictable amount of time has passed, used in behavioral psychology studies.