Given the cash flows below for two mutually exclusive projects, what is the B/C ratio and...
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Given the cash flows below for two mutually exclusive projects, what is the B/C ratio and which project should you select if the MARR is 6%? Project A: Cash flows for years 0-6: (-$2000), $500, $500, (-$1000), (-$1000), $3500, $4000. Project B: Cash flows for years 0-6: (-$3000), $0, $1000, (-$500), $1800, (-$3500), and $9000. O B/C = 2.578. Select Project B. OB/C=0.96. Select Project A. O B/C= 1.007. Select Project B. OB/C=0.892. Select Project A. Given the cash flows below for two mutually exclusive projects, what is the B/C ratio and which project should you select if the MARR is 6%? Project A: Cash flows for years 0-6: (-$2000), $500, $500, (-$1000), (-$1000), $3500, $4000. Project B: Cash flows for years 0-6: (-$3000), $0, $1000, (-$500), $1800, (-$3500), and $9000. O B/C = 2.578. Select Project B. OB/C=0.96. Select Project A. O B/C= 1.007. Select Project B. OB/C=0.892. Select Project A.
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To calculate the benefitcost BC ratio for each project we divide the present value of the benefits b... View the full answer
Related Book For
Corporate Finance A Focused Approach
ISBN: 978-1305637108
6th edition
Authors: Michael C. Ehrhardt, Eugene F. Brigham
Posted Date:
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