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

question 68

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 approximately

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

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Definitions:

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