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What is the present value at year zero for the cash flow of $12,000 received at year 2 at a discount rate of 10% ?
What is the present value at year zero for the cash flow of $12,000 received at year 2 at a discount rate of 10% ? a. $9,015.78 b. $12,000.00 c. $9,917.36 d. Any of the above e. None of the above The future cash flow formula at year t(t>=0) for an investment amount of PV0 made at year 0 is a. Ct=PV0(1+r)t b. Ct=PV0(1+r)(t1) c. Ct=PV0 * (1+r)t+1 d. Any of the above e. None of the above What is the (net) present value at year zero for the cash flows of $300,$100 and $200 received at years of 0,1 , and 2 , respectively, at a discount rate of 10% ? a. $44.80 b. $44.80 C. $43.80 d. $43.80 e. None of the above Which of the following statements is true about the use of the net present value (NPV0) for a project? a. if NPV0 is greater than zero, reject the project b. if NPV0 is less than zero, take the project c. if NPV0 is greater than zero, take the project d. take the project for any NPV0 e. None of the above
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