The NPV (net present value)of a cash stream that is equal to $100 per period for 5 periods with a rate of return of 10% (.10)per period would be

Name: The NPV (net present value)of a cash stream that is equal to $100 per period for 5 periods with a rate of return of 10% (.10)per period would be
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Question

Quizplus · Accepted Answer

Using the formula for NPV:

NPV = (100/(1+0.10)^1) + (100/(1+0.10)^2) + (100/(1+0.10)^3) + (100/(1+0.10)^4) + (100/(1+0.10)^5)

NPV = 416.98

Therefore, the answer is B.

The NPV (Net Present Value)of a Cash Stream That Is