10.5 (LG 10.4) The following data are available for two mutually exclusive projects: Project A Project...
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10.5 (LG 10.4) The following data are available for two mutually exclusive projects: Project A Project B £17 000 000 £17 000 000 5 000 000 11 000 000 6 000 000 1 000 000 PW(benefits) PW(operating and maintenance costs) PW(capital cost) a. Compute the benefit-cost ratios for both projects. b. Compute the modified benefit-cost ratios for both projects. c. Compute the benefit-cost ratio for the increment between the projects. d. Compute the present worths of the two projects. e. Which is the preferred project? Explain. 10.5 (LG 10.4) The following data are available for two mutually exclusive projects: Project A Project B £17 000 000 £17 000 000 5 000 000 11 000 000 6 000 000 1 000 000 PW(benefits) PW(operating and maintenance costs) PW(capital cost) a. Compute the benefit-cost ratios for both projects. b. Compute the modified benefit-cost ratios for both projects. c. Compute the benefit-cost ratio for the increment between the projects. d. Compute the present worths of the two projects. e. Which is the preferred project? Explain.
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Financial Management for Decision Makers
ISBN: 978-0138011604
2nd Canadian edition
Authors: Peter Atrill, Paul Hurley
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