What is the net present value of the following sequence of annual cash flows at a discount rate of 16 percent APR? $\frac { t = 1 } { 100,000 } \quad \frac { t = 2 } { 300,000 }$
A)$136,741.97
B)$122,948.87
C)$158,620.69
D)$139,418.23

Question

Quizplus · Accepted Answer

The NPV is calculated by discounting each cash flow to the present value using the formula: NPV = $ \frac{100,000}{(1+0.16)^1} + \frac{300,000}{(1+0.16)^2} $. This results in $136,741.97.

What Is the Net Present Value of the Following Sequence t=1100,000t=2300,000\frac { t = 1 } { 100,000 } \quad \frac { t = 2 } { 300,000 }100,000t=1​300,000t=2​

What Is the Net Present Value of the Following Sequence $\frac { t = 1 } { 100,000 } \quad \frac { t = 2 } { 300,000 }$