Multiple choice

1.  What is the net present value of the following cash flow at a discount rate of 11%?    

a. $69,108.03 

b. $231,432.51 

c. $80,000 

d. None of the above 

2.  What is the present value of the following cash flow at a discount rate of 16% APR?    

a. $136,741.97 

b. $122,948.87 

c. $158,620.69 

d. None of the above 

3. What is the net present value (NPV) of the following cash flows at a discount rate of 9%?    

a. $122,431.81 

b. $200,000 

c. $155,950.68 

d. None of the above 

4. A perpetuity is defined as:  

a. Equal cash flows at equal intervals of time for a specific number of periods 

b. Equal cash flows at equal intervals of time forever 

c. Unequal cash flows at equal intervals of time forever 

d. None of the above