Question: please answer thank you Project B B3 = $1 Min/year C3 = $1.5 MIn C2 = $3.0 Min 7.5 Years 7.5 Years Project B has
Project B B3 = $1 Min/year C3 = $1.5 MIn C2 = $3.0 Min 7.5 Years 7.5 Years Project B has a capital cost (C2) $3,000,000. After 7.5 years you expect an extra cost (C3) of $1,500,000 to upgrade the system. The annual benefits are expected to be (B3) $1,000,000 per year during the 15 years of the life of the project, and an interest rate of i=0.04 (4%) per year. Estimate the present value, total cost and benefits: Cost Present Value C2= Present Value C3- Total Cost Project B- Benefits Present Value B3 - Total Benefits Project B
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