Homework Answers
B/C ratio = 1800000 * (P/A,10%,50) / (56000000 + 300000 * (P/A,10%,50) + 5000000 * (P/F,10%,10) + 5000000 * (P/F,10%,20) + 5000000 * (P/F,10%,30) + 5000000 * (P/F,10%,40) )
= 1800000 * 9.914814 / (56000000 + 300000 * 9.914814+ 5000000 * 0.385543 + 5000000 * 0.148644 + 5000000 * 0.057309 + 5000000 *0.022095 )
= 0.29
As B/C ratio is less than 1, this project should not be selected
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