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Identify the Equation for Calculating the Net Present Value for a Stated

Question 20

Multiple Choice

Identify the equation for calculating the net present value for a stated period of time, where Ft = cash flow in period t, and i is the discount rate.


A) NPV=t=0nFt+i2n \mathrm{NPV}=\sqrt{\frac{\sum_{t=0}^{n} \mid \frac{F_{\mathrm{t}}+i}{2}}{n}}

B) NPV=t0nFt(1+i) t \mathrm{NPV}=\sum_{t-0}^{n} F_{t}(1+i) ^{t}

C) NPV=t0nFt(1+i) t\mathrm{NPV}=\sum_{t-0}^{n} \frac{F_{t}}{(1+i) ^{t}}

D) NPV=t0nFti(1+i) t \mathrm{NPV}=\sum_{t-0}^{n} \frac{F^{t}}{i} \sqrt{(1+i) ^{t}}

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