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
Correct Answer:
Verified
Correct Answer:
Verified
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