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

question 42

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,the net present value of this investment is:

• A)greater than $80,000 but less than $130,000.
• 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:

Dualistic Thinking

The tendency to categorize aspects of life into binaries or opposites, often viewing them as completely separate and distinct.

Relativistic Thinking

is the ability to understand that knowledge and truth may vary across different contexts and perspectives, recognizing multiple viewpoints.

Perry's Theory

A cognitive development theory proposed by William G. Perry that outlines how students evolve through different stages of intellectual and ethical development in college.

Interpersonal Therapy

A form of therapy focused on improving interpersonal relationships and communication patterns to alleviate mental health issues.