(Net Present Value Table Required)Alexander Industries,in Chicago,plans to Take Advantage

question 55

Multiple Choice

(Net present value table required) Alexander Industries,in Chicago,plans to take advantage of the winds blowing in from Lake Michigan.Alexander is developing a project to install a wind turbine that would generate electricity and reduce energy costs.The turbine would have an initial cost of $500,000 and would provide a net cost savings of $57,000 per year.The turbine will have a life of 25 years.
If Alexander assigns a discount rate of 10% to this project,what is the net present value (NPV) of the wind turbine?

• A)$17,389
• B)$(494,756)
• C)$517,389
• D)$5,244

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Definitions:

Specific Departments

Individual units or divisions within an organization that have distinct roles, responsibilities, and objectives, such as marketing, finance, or human resources.

Social Responsibility

The obligation of organizations to act in ways that benefit society at large, beyond their own interests.

Philanthropic Goodwill

The positive reputation and support a business gains through charitable acts, donations, and community service.

Mission Statement

A formal summary of the aims and values of a company, organization, or individual, often guiding its strategies and actions.