Asked by maame akosua osei-bonsu on Sep 23, 2024
What is the net present value of the investment?
A) $115.85
B) $1055.59
C) $1076.56
D) $346.78
Net Present Value
The difference between the present value of cash inflows and outflows over a period of time, used in capital budgeting to assess the profitability of an investment.
Cash Flows
The aggregate sum of funds flowing in and out of a company, particularly influencing its liquid assets.
Interest Rate
The proportion of a loan that is charged as interest to the borrower, typically expressed as an annual percentage of the loan outstanding.
- Master the idea of Net Present Value (NPV) and the steps involved in its determination.
- Assess the present worth of revenue streams emanating from an investment.
Learning Objectives
- Master the idea of Net Present Value (NPV) and the steps involved in its determination.
- Assess the present worth of revenue streams emanating from an investment.