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

question 71

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%, the net present value of this investment is

• A) greater than $80,000.
• B) greater than $130,000.
• C) less than $30,000.
• D) impossible to calculate, because no interest rate is given.
• E) impossible to calculate, because variable costs are not known.

---

Definitions:

Depression Rates

The prevalence of depression within a specific population, often measured to understand mental health trends and needs for intervention.

Immediate Social Context

The direct environment surrounding an individual, including the people and social settings that influence their behavior and experiences.

Sexual Partner

An individual with whom another individual engages in sexual activity, which may or may not imply a romantic relationship.

Skipping Classes

The act of deliberately missing scheduled academic classes without valid reasons, often impacting educational outcomes.