Which of the Following Is the Correct Equation to Solve

question 30

Multiple Choice

Which of the following is the correct equation to solve for the NPV of the project that has an initial outlay of $30,000,followed by three years of $20,000 in incremental cash inflow? Assume a discount rate of 10%.

• A)NPV = -30,000 + (3 × 20,000)/(1.10)³
• B)NPV = -$30,000 + $20,000/(1.10)¹ + $20,000/(1.10)² + $20,000/(1.10)³
• C)NPV = -$30,000 + $20,000/(1.01)^.10 + $20,000/(1.02)^.10 + $20,000/(1.03)^.10
• D)NPV = -$30,000 + $20,000/(1.1)^.10 + $20,000(1.2)^.10 + $20,000(1.3)^.10

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Definitions:

Liberty

The state of being free within society from oppressive restrictions imposed by authority on one's way of life, behavior, or political views.

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The largest or most severe danger or challenge facing an individual, group, or institution.

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A historic union of six Native American tribes living in the northeastern United States, known for their democratic governing system.

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Refers to the period from 1700 to 1729, a time of significant political, economic, and cultural developments in Europe and its colonies.