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(Net Present Value Table Required)Alexander Industries,in Chicago,plans to Take Advantage

Question 35

Multiple Choice

(Net present value table required) Alexander Industries,in Chicago,plans to take advantage of the winds blowing in from Lake Michigan.Alexander is developing a project to install a wind turbine that would generate electricity and reduce energy costs.The turbine would have an initial cost of $500,000 and would provide a net cost savings of $57,000 per year.The turbine will have a life of 25 years.
If Alexander assigns a discount rate of 10% to this project,what is the net present value (NPV) of the wind turbine?


A) $17,389
B) $(494,756)
C) $517,389
D) $5,244

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