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please please do not copy the answer from internet A capacity alternative has an initial cost...

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General Management

please please do not copy the answer from internet

A capacity alternative has an initial cost of $75,000 and$35,000 salvage value. It creates cash flow (income) of $15,000 foreach of the next five years. If the cost of capital is 12 percent(i =12%), what is the net present value of this investment?

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3.7 Ratings (366 Votes)
Present value factor 1 1 r n Where r Rate of interest 12 or 012 n Years 0 to 5 So PV Factor for year 2 will be 1    See Answer
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