(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:

Punishment by Removal

Punishment by removal involves decreasing the likelihood of a behavior by removing a desirable stimulus following the behavior.

Negative Reinforcement

A behavioral psychology concept where a response or behavior is strengthened by stopping, removing, or avoiding a negative outcome or aversive stimulus.

Probability of Response

A measure of the likelihood that a specific behavior will occur in response to a given stimulus.

Fixed Ratio Schedule

A schedule of reinforcement where a response is reinforced only after a specified number of responses.