Is this the correct answer?
PV=-50,000+180,000/1+r+180,000/1+r squared=250,000
does r have a value?
oh yes, r=20%
To determine if the given expression is the correct answer, we need to examine whether it satisfies the given equation.
The equation is: PV = -50,000 + (180,000 / (1+r)) + (180,000 / (1+r)^2) = 250,000
To verify if this answer is correct, we can follow these steps:
1. Simplify the expression by carrying out the calculations in the brackets first, using the order of operations (PEMDAS).
First, let's consider the second term:
180,000 / (1+r) = 180,000 / (1+r)
For the third term:
180,000 / (1+r)^2 = 180,000 / (1+r)^2
2. Combine the terms within parentheses:
-50,000 + (180,000 / (1+r)) + (180,000 / (1+r)^2) = -50,000 + (180,000 / (1+r)) + (180,000 / (1+r)^2)
3. Simplify further by finding a common denominator and combining like terms if possible.
At this point, we can see that we cannot simplify the expression further because there is no clear link to the left-hand side of the equation, which is 250,000.
Therefore, the expression provided (PV = -50,000 + (180,000 / (1+r)) + (180,000 / (1+r)^2) = 250,000) is not the correct answer.