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:

Sensorimotor Stage

The first stage in Piaget's theory of cognitive development, where infants learn through interacting with the environment using their senses and motor abilities.

Intellectual Development

The growth and change in intellectual capabilities and cognitive skills, influenced by both genetic and environmental factors.

Cognition

The cognitive activity involved in gaining comprehension and insight through reasoning, firsthand encounters, and sensory perception.

Exercise Programs

Structured plans of physical activities designed to improve health and fitness.