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

question 68

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 approximately

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

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Definitions:

Woodrow Wilson

The 28th president of the United States (1913-1921), known for leading the country during World War I and for his efforts in shaping the post-war peace settlement, including the founding of the League of Nations.

Progressive Movement

A political and social-reform movement in the late 19th and early 20th centuries that aimed to address the problems caused by industrialization, urbanization, and corruption in government.

1916-1920

A period marked by World War I (1914-1918), significant political and social changes worldwide, and the start of the Roaring Twenties.

Declined

A term indicating a decrease in quantity, quality, or strength over time.