53   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? Select one: $20,920 $49,840 $106,990 $26,160 $70,920

Practical Management Science
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Chapter2: Introduction To Spreadsheet Modeling
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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?



Select one:

  1. $20,920
  2. $49,840
  3. $106,990
  4. $26,160
  5. $70,920

 

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