What is the NPV of the following set of cash flows at a discount rate of zero percent? What if the discount rate is 15 percent?

A)-$41,700; -$8,665.07
B)-$41,700; $1,208.19
C)$0; $1,208.19
D)$2,500; $1,208.19
E)$2,500; -$8,665.07

Question

What is the NPV of the following set of cash flows at a discount rate of zero percent? What if the discount rate is 15 percent?

A)-$41,700; -$8,665.07 
B)-$41,700; $1,208.19 
C)$0; $1,208.19 
D)$2,500; $1,208.19 
E)$2,500; -$8,665.07

Quizplus · Accepted Answer

NPV_{0 percent} = -$41,700 + $13,200 + $11,900 + $19,100 = $2,500

What Is the NPV of the Following Set of Cash