Which of the Following Is the Correct Equation to Solve

question 34

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

---

Definitions:

Epidemiological Study

Research aimed at investigating the patterns, causes, and effects of health and disease conditions in defined populations.

Autism Spectrum Disorder

A developmental disorder characterized by difficulties with social interaction and communication, and by restricted or repetitive patterns of thought and behavior.

Repetitive Patterns

Recurring sequences or configurations in data, behavior, processes, or structures.