Asked by
Alisha Vickers
on Nov 12, 2024
Verified
The net present value for this investment is
A) $20,140
B) $(20,140)
C) $19,875
D) $(19,875)
Net Present Value
A calculation that compares the value of a dollar today to the value of that same dollar in the future, taking inflation and returns into account.
Present Value Factor
A factor used to calculate the present value of a future amount of money or stream of cash flows given a specific rate of return.
- Use the concept of present value factors to appraise the viability of investments.
- Appraise proposals for capital investment by employing net present value and internal rate of return techniques.
Verified Answer
LB
Learning Objectives
- Use the concept of present value factors to appraise the viability of investments.
- Appraise proposals for capital investment by employing net present value and internal rate of return techniques.