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What is the approximate net present value of this investment

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Question - 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. $70,920

b. $26,160

c. $20,920

d. $49,840

e. $106,990

Reference no: EM133089470

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