EUAC = 40000 *(A/P,15%,8) + 4000 - 5000*(A/F,15%,8)
= 40000 *0.2229 + 4000 - 5000*0.0729
= 12551.50
B/C = EUAB / EUAC = 18733 / 12551.50 = 1.4924 ~ 1.49
option a is correct answer
5. Assume EUAB -$18,733 (It is not!). The Benefit Cost ratio is closest to ... A/F,...
5. Assume EUAB - $18,733 (It is not!). The Benefit Cost ratio is closest to ... A/F, 15%,8 EUAC = 40,000 + 4,000 5,000 1.0729 ) = $43,635.5o a) 1.49 b) 1.45 c) 1.58 d) 1.73 e) 2.19 f) 2.41 8) 2.07 18.733 43,635.50 = 0.42
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