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Sagot :
NVP stands for "net-present value," which is a financial calculation used to determine the current value of a future stream of cash flow.
What does Current value mean?
The current market value of an item, investment, or asset is its current market value. It is the amount of money that could be received if the item or asset were sold right now. The current value can fluctuate over time due to market conditions, supply and demand, and other factors.
What does Investment mean?
The process of putting money into assets or activities with the expectation of receiving a financial return is known as investing. It usually entails purchasing assets such as stocks, bonds, mutual funds, real estate, or other assets in order to generate income or capital gains.
The project’se (NPV) would be under the new tax law would be:
NPV = -$20,000 + $20,000(1-0.25)(1.11)^-1 + $20,000(1-0.25)(1.11)^-2 + $20,000(1-0.25)(1.11)^-3 + $20,000(1-0.25)(1.11)^-4
= $53,579
Thus according to the correct question option B. $53,579 is the correct answer.
To know more about Net Present Value(NPV),
https://brainly.com/question/17053574
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