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2. A capacity alternative has an initial cost of $75,000 and $35,000 salvage value. It creates cash flow (income) of $15,000 for each of the

2. A capacity alternative has an initial cost of $75,000 and $35,000 salvage value. It creates cash flow (income) of $15,000 for each 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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