What is the net present value (NPV) of the following sequence of cash flows at a discount rate of 9 percent? $\frac{\mathrm{t}=0}{-250.000}$ $ \quad$ $\frac{t=1}{100.000}$ $ \quad$$\frac{\mathrm{t}=2}{150.000}$ $ \quad$ $\frac{\mathrm{t}=3}{20,000}$
A)$122,431.81
B)$200,000.00
C)$155,950.68
D)$177,483.77

Question

What is the net present value (NPV) of the following sequence of cash flows at a discount rate of 9 percent? $\frac{\mathrm{t}=0}{-250.000}$ $ \quad$  $\frac{t=1}{100.000}$  $ \quad$$\frac{\mathrm{t}=2}{150.000}$  $ \quad$ $\frac{\mathrm{t}=3}{20,000}$
A)$122,431.81
B)$200,000.00
C)$155,950.68
D)$177,483.77

Quizplus · Accepted Answer

The NPV is calculated as the sum of the present values of each cash flow, discounted at the given rate. The present value of each cash flow is calculated as the cash flow divided by (1 + discount rate)^t, where t is the number of years from the present.In this case, the NPV is calculated as:NPV = -250,000/(1 + 0.09)^0 + 100,000/(1 + 0.09)^1 + 150,000/(1 + 0.09)^2 + 20,000/(1 + 0.09)^3= -250,000 + 91,743.12 + 137,640.45 + 16,528.24= $122,431.81

What Is the Net Present Value (NPV) of the Following t=0−250.000\frac{\mathrm{t}=0}{-250.000}−250.000t=0​

What Is the Net Present Value (NPV) of the Following $\frac{\mathrm{t}=0}{-250.000}$