1. An investment opportunity has an initial cost of $1.8M and a uniform annual benefit of $400,000 over 6 years. Using a MARR of 10%, what is the benefit-cost ratio of this opportunity? Would you recommend it be pursued? Why or why not?
1. An investment opportunity has an initial cost of $1.8M and a uniform annual benefit of $400,000 over 6 years. Using a MARR of 10%, what is the benefit-cost ratio of this opportunity? Would you recommend it be pursued? Why or why not?
Essentials of Economics (MindTap Course List)
8th Edition
ISBN:9781337091992
Author:N. Gregory Mankiw
Publisher:N. Gregory Mankiw
Chapter19: The Basic Tools Of Finance
Section: Chapter Questions
Problem 3CQQ
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