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.

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Definitions:

Reinforcement

In behavioral psychology, a stimulus that increases the likelihood of a behavior being repeated, which can be either positive (adding a desirable outcome) or negative (removing an undesirable outcome).

Structural Accommodation

Adjustments or changes made to physical environments or structures to support inclusivity or accessibility for individuals with specific needs.

Ethnicity

A category of people who identify with each other based on common ancestral, social, cultural, or national experiences.

Sociocultural Perspective

A viewpoint that emphasizes the influence of society, culture, and community on individual behavior and mental processes.