Find the benefit-cost ratio and profitability index for group’s company startup at an interest rate of 10%

Initial Investment for Company Startup:    $2,000,000  
Anticipated Annual Costs:          
Annual Operating and Maintenance Costs   $20,000
Annual Material Costs           $50,000
Annual Personnel Costs           $80,000
Anticipated Revenue:          
Year 1:   $590,000          
Year 2:   $570,000          
Year 3:   $520,000          
Year 4:   $150,000          
Year 5:   $580,000          
Year 6:   $930,000          
Year 7:   $650,000

Answer rating: 100% (QA)

To calculate the benefitcost ratio and profitability index for the company startup we need to consider the initial investment annual costs and anticip... View the full answer