1. A developer is considered two projects. A project has a capital cost RM760,000. Income for the project will be RM95,000 per year. At the end of 12 years the project can be sold for RM 30,000. The project's discount rate is 16%. What is the Benefit Cost Ratio for project A. Answer to 2 decimal places.

Intermediate Financial Management (MindTap Course List)
13th Edition
ISBN:9781337395083
Author:Eugene F. Brigham, Phillip R. Daves
Publisher:Eugene F. Brigham, Phillip R. Daves
Chapter12: Capital Budgeting: Decision Criteria
Section: Chapter Questions
Problem 10P: Project S has a cost of $10,000 and is expected to produce benefits (cash flows) of $3,000 per year...
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1. A developer is considered two projects. A project has a capital cost RM760,000.
Income for the project will be RM95,000 per year. At the end of 12 years the project
can be sold for RM 30,000. The project's discount rate is 16%. What is the Benefit Cost
Ratio for project A. Answer to 2 decimal places.
2. Project B has a capital cot of RM1,400,000 and a lifetime of 20 years. Income for the
project will be RM200,000 per year. At the end of 20 years the project can be sold for
RM 200,000. The project's discount rate is 9%. What is the Benefit Cost Ratio for
project B. Answer to 2 decimal places.
Transcribed Image Text:1. A developer is considered two projects. A project has a capital cost RM760,000. Income for the project will be RM95,000 per year. At the end of 12 years the project can be sold for RM 30,000. The project's discount rate is 16%. What is the Benefit Cost Ratio for project A. Answer to 2 decimal places. 2. Project B has a capital cot of RM1,400,000 and a lifetime of 20 years. Income for the project will be RM200,000 per year. At the end of 20 years the project can be sold for RM 200,000. The project's discount rate is 9%. What is the Benefit Cost Ratio for project B. Answer to 2 decimal places.
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