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What Is the Excel Formula to Compute the Net Present

Question 1

Multiple Choice

What is the Excel formula to compute the net present value for an initial $53,000 investment and cash inflows of $17,000 per year for years 1 through 4 with a 10% cost of capital?


A) =NPV(0.1,53000,−17000,−17000,−17000,−17000)
B) =NPV(0.1, 17000,17000,17000,17000,−53000)
C) =NPV(−53000,17000,17000,17000,17000)
D) =NPV(0.1,−53000,17000,17000,17000,17000)

Correct Answer:

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