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

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.