Question

1.) Calculate the Benefit-Cost Ratio for the following Investment B, assuming an annual discount rate of...

1.) Calculate the Benefit-Cost Ratio for the following Investment B, assuming an annual discount rate of 14%.

C=10,000 C=8,000 C=6,000 I=7,500 I=7,500 ... I=7,500 L=10,000
0 1 2 3 4 ... 10

C: Cost, I:Income, L: Salvage value

2.)

Calculate the Present Value Ratio for the following Investment C, assuming an annual discount rate of 12%.

C=10,000 C=8,000 C=6,000 I=7,500 I=7,500 ... I=7,500 L=8,000
0 1 2 3 4 ... 10

C: Cost, I:Income, L: Salvage value

0 0
Add a comment Improve this question Transcribed image text
Answer #1

1)

D183 xfc-SUM(D172:D179)/SUM(D169:D171)*-1 167 Year! Cash flows | PVIF@14% | Discounted cash flows 168 169 0(10,000) 170 1 $(8,000) 171 2$(6,000 172 3 $ 7,500 173 4$ 7,500 1745$ 7,500 175 6 $ 7,500 176 7 7,500 177 8 $ 7,500 178 9 7,500 179 10 17,500 180 181 182 AxB 1.000 $ 0.877 |$ 0.769 $ 0.675 $ 0.592 S 0.519 $ 0.456 $ 0.400 $ 0.351 S 0.308 $ 0.270 S 10,000 7,018 4,61 5,062 4,441 3,895 3,417 2,997 2,629 2,306 4,721 NPV- 7,834 183 Benefit-Cost ratio 1.36

Add a comment
Know the answer?
Add Answer to:
1.) Calculate the Benefit-Cost Ratio for the following Investment B, assuming an annual discount rate of...
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Not the answer you're looking for? Ask your own homework help question. Our experts will answer your question WITHIN MINUTES for Free.
Similar Homework Help Questions
ADVERTISEMENT
Free Homework Help App
Download From Google Play
Scan Your Homework
to Get Instant Free Answers
Need Online Homework Help?
Ask a Question
Get Answers For Free
Most questions answered within 3 hours.
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT