Use the present value tables included in Appendix A of your textbook to compute the NPV of $12,500 received in year 5 at a 6% discount rate.

Name: Use the present value tables included in Appendix A of your textbook to compute the NPV of $12,500 received in year 5 at a 6% discount rate.
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Question

Quizplus · Accepted Answer

Using the present value tables, the present value factor for 5 years at a 6% discount rate is 0.7473. 
Therefore, NPV = $12,500 x 0.7473 = $9,337.5. 
Hence, the correct option is B.

Use the Present Value Tables Included in Appendix a of Your