10.5 (LG 10.4) The following data are available for two mutually exclusive projects: Project A Project B PW(benefits) £17 000 000 £17 000 000 PW(operating and maintenance costs) 5 000 000 11 000 000 PW(capital cost) 6 000 000 1 000 000 a. Compute the benefit-cost ratios for both projects. b. Compute the modified benefit-cost ratios for both projects. c. Compute the benefit-cost ratio for the increment between the projects. d. Compute the present worths of the two projects. e. Which is the preferred project? Explain.
10.5 (LG 10.4) The following data are available for two mutually exclusive projects: Project A Project B PW(benefits) £17 000 000 £17 000 000 PW(operating and maintenance costs) 5 000 000 11 000 000 PW(capital cost) 6 000 000 1 000 000 a. Compute the benefit-cost ratios for both projects. b. Compute the modified benefit-cost ratios for both projects. c. Compute the benefit-cost ratio for the increment between the projects. d. Compute the present worths of the two projects. e. Which is the preferred project? Explain.
Managerial Economics: Applications, Strategies and Tactics (MindTap Course List)
14th Edition
ISBN:9781305506381
Author:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris
Publisher:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris
Chapter17: Long-term Investment Analysis
Section: Chapter Questions
Problem 10E
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the answer to this question is Q10.45 a= 9,000,000 and 6,000,000, b= 1.545 and 1.417,
c= 2 and 6, d= 0, e= $6,000,000 and $5,000,000
plz help me with this question
we just need to find how we get that answer for this question, please help NO EXCEL
![10.5 (LG 10.4) The following data are available for two mutually exclusive projects:
Project A
Project B
PW(benefits)
£17 000 000
£17 000 000
PW(operating and maintenance costs)
5 000 000
11 000 000
PW(capital cost)
6 000 000
1 000 000
a. Compute the benefit-cost ratios for both projects.
b. Compute the modified benefit-cost ratios for both projects.
c. Compute the benefit-cost ratio for the increment between the projects.
d. Compute the present worths of the two projects.
e. Which is the preferred project? Explain.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F46289ccc-cca9-42d1-8da9-2c80bc3b0bfe%2F1a184a9e-552d-4707-89a3-bcf2463ecadb%2Fub1or5n_processed.png&w=3840&q=75)
Transcribed Image Text:10.5 (LG 10.4) The following data are available for two mutually exclusive projects:
Project A
Project B
PW(benefits)
£17 000 000
£17 000 000
PW(operating and maintenance costs)
5 000 000
11 000 000
PW(capital cost)
6 000 000
1 000 000
a. Compute the benefit-cost ratios for both projects.
b. Compute the modified benefit-cost ratios for both projects.
c. Compute the benefit-cost ratio for the increment between the projects.
d. Compute the present worths of the two projects.
e. Which is the preferred project? Explain.
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