Which of the following is a correct equation to solve for the NPV of the project

Question

Which of the following is a correct equation to solve for the NPV of the project that has an initial outlay of $30,000, followed by incremental cash inflows in the next 3 years of $15,000, $20,000, and $30,000? Assume a discount rate of 10%.
a. NPV = - $30,000 + $15,000(1.10)1 + $20,000(1.10)2 + $30,000(1.10)3
b. NPV = - $30,000 + $15,000/(1.10)1 + $20,000/(1.10)2 + $30,000/(1.10)3
c. NPV = - $30,000 + $15,000/(1.01).10 + $20,000/(1.02).10 + $30,000/(1.03).10
d. NPV = - $30,000 + $15,000/(1.1).10 + $20,000(1.2).10 + $30,000(1.3).10

Explanation / Answer

b. NPV = - $30,000 + $15,000/(1.10)1 + $20,000/(1.10)2 + $30,000/(1.10)3

JUSTIFICATION: The equation for a present given a future is P = F (1+i)-N, which is the same as P = F/(1+i)N. Our interest rate is 10% = 0.10, so if you substitute you get: P = F/(1+0.10)N = F/(1.10)N; where N is the number of years.

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