1. Determine the B/C ratio for the following projectFirst CostP100, 000Project life, years5Salvage valueAnnual benefitsP10, 000P60, 000Annual O and MInterest rate, %P22, 00015Ans: B/C = 1.162. Data for two alternatives are as follows:AlternativesAВInvestmentР35, 000P50, 000Annual benefitsP20, 000P25, 000Annual O and MEstimated life, yearsNet salvage valueРе, 450P13, 83048.Р3, 500Using an interest rate of 20%, which alternative should be chosen?Ans: Alternative A is referred over Alternative B

The benefit-cost ratio (BCR) seems to be a performance metric used in cost and benefit evaluation to…

1. Determine the B/C ratio for the following project First Cost Р100, 000 Project life, years Salvage value 5 P10, 000 Annual benefits P60, 000 Annual O and M P22, 000 Interest rate, % 15 Ans: B/C = 1.16 2. Data for two alternatives are as follows: | Alternatives A В Investment P35, 000 P50, 000 Annual benefits Annual O and M Estimated life, years Net salvage value Р20, 000 P25, 000 P6, 450 P13, 830 4 8. Р3, 500 sing an interest rate of 20%, which alternative should be chosen? Ans: Alternative A is referred over Alternative B

1. Determine the B/C ratio for the following project First Cost Р100, 000 Project life, years Salvage value 5 P10, 000 Annual benefits P60, 000 Annual O and M P22, 000 Interest rate, % 15 Ans: B/C = 1.16 2. Data for two alternatives are as follows: | Alternatives A В Investment P35, 000 P50, 000 Annual benefits Annual O and M Estimated life, years Net salvage value Р20, 000 P25, 000 P6, 450 P13, 830 4 8. Р3, 500 sing an interest rate of 20%, which alternative should be chosen? Ans: Alternative A is referred over Alternative B

Survey of Accounting (Accounting I)

8th Edition

ISBN:9781305961883

Author:Carl Warren

Publisher:Carl Warren

Chapter15: Capital Investment Analysis

Section: Chapter Questions

Problem 15.3.1P

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