A Capacity Alternative Has an Initial Cost of $50,000 and Cash

question 61

Multiple Choice

A capacity alternative has an initial cost of $50,000 and cash flow of $20,000 for each of the next four years. If the cost of capital is 5 percent, the net present value of this investment is approximately

• A) $20,920
• B) $26,160
• C) $49,840
• D) $70,920
• E) $106,990

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Definitions:

Batesian Mimicry

A form of mimicry where a harmless species has evolved to imitate the warning signals of a harmful species to deter predators.

Müllerian Mimicry

A form of mimicry where two or more harmful species, often within the same area, evolve to look similar, thus enhancing their protection from predators through mutual reinforcement of their warning signals.

Intertidal Zone

The area along coastlines that is exposed to air at low tide and submerged at high tide, with a unique set of organisms adapted to its conditions.

Niches

The role or position that an organism or population occupies within an ecosystem, encompassing everything that affects its survival and reproduction.