14. Given the data for two alternatives, choose the better alternative using the B/C ratioanalysis. MARR = 8%AlternativeXYFirst cost$100,00050,000Operating costs/yearBenefits /yearDis-benefits/yearLife in years$140,00060,000120,00025,000100,00030,000510

Benefit cost ratio = Present Value of Benefits/Present Value of costs X: Net benefits = Benefits…

14. Given the data for two alternatives, choose the better alternative using the B/C ratio analysis. MARR = 8% Alternative Y $140,000 60,000 120,000 25,000 10 First cost Operating costs/year Benefits /year Dis-benefits/year Life in years $100,000 50,000 100,000 30,000 5

14. Given the data for two alternatives, choose the better alternative using the B/C ratio analysis. MARR = 8% Alternative Y $140,000 60,000 120,000 25,000 10 First cost Operating costs/year Benefits /year Dis-benefits/year Life in years $100,000 50,000 100,000 30,000 5

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter11: Capital Budgeting Decisions

Section: Chapter Questions

Problem 19EB: Wallace Company is considering two projects. Their required rate of return is 10%. Which of the two...

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Question

14. Given the data for two alternatives, choose the better alternative using the B/C ratio
analysis. MARR = 8%
Alternative
X
Y
First cost
$100,000
50,000
Operating costs/year
Benefits /year
Dis-benefits/year
Life in years
$140,000
60,000
120,000
25,000
100,000
30,000
5
10

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