The following spreadsheet shows financial data for Trance Electronics.Use the spreadsheet to answer the question(s)below.
-What is the net present value of the company?
A)$975,567,800
B)$3,867,334,190
C)$1,700,178,021
D)$2,246,145,678

Question

The following spreadsheet shows financial data for Trance Electronics.Use the spreadsheet to answer the question(s)below. 
-What is the net present value of the company?
A)$975,567,800 
B)$3,867,334,190 
C)$1,700,178,021 
D)$2,246,145,678

Quizplus · Accepted Answer

The net present value (NPV) is calculated by adding up the present values of the cash inflows and subtracting the present values of the cash outflows. Using a discount rate of 10%, the NPV of Trance Electronics is calculated to be $1,700,178,021. Option C is the only choice that matches this value.

The Following Spreadsheet Shows Financial Data for Trance Electronics