Find the net present value (NPV) of the following cash flows when the discount rate is 7% pa: $60,000 immediately (t=0); $80,000 in 1.5 years (t=1.5); and $100,000 in 4.5 years (t=4.5). The net present value of these payments is: Select one: a. $157,458.96 b. $206,031.23 c. $216,838.09 d. $240,000 e. $279,357.32

Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
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Find the net present value (NPV) of the following cash flows when the discount rate is 7% pa:
$60,000 immediately (t=0);
$80,000 in 1.5 years (t=1.5); and
$100,000 in 4.5 years (t=4.5).
The net present value of these payments is:
Select one:
○ a. $157,458.96
b. $206,031.23
c. $216,838.09
d. $240,000
e. $279,357.32
Transcribed Image Text:Find the net present value (NPV) of the following cash flows when the discount rate is 7% pa: $60,000 immediately (t=0); $80,000 in 1.5 years (t=1.5); and $100,000 in 4.5 years (t=4.5). The net present value of these payments is: Select one: ○ a. $157,458.96 b. $206,031.23 c. $216,838.09 d. $240,000 e. $279,357.32
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