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

question 85

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,what is the approximate net present value of this investment?

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

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Definitions:

Status Differentials

Variations in rank, prestige, or standing among members of a group or an organization, often influencing social and professional interactions.

Conflict

A situation in which there are opposing ideas, interests, or actions between individuals or groups, often leading to tension or dispute.

Incompatible Behaviors

Actions or responses that cannot coexist or are mutually exclusive in specific conditions.

Cooperative

An organizational model or strategy where participants work together towards a common goal, sharing resources and responsibilities.