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:

Informal Rules

Unwritten, unofficial guidelines or norms that govern behavior and practices in an organization or group, influencing actions and decisions.

Shared Understanding

A mutual recognition and agreement of information, goals, or perspectives among a group of people.

Sagas

Long, detailed narratives about the exploits and adventures of historical or legendary figures, often emphasizing heroic feats.

Organizational Mission

The organizational mission is a statement that outlines an organization's purpose, core values, and fundamental goals, guiding its strategies and operations.