A coffee shop has an expansion project with a cost of $50,000, the expected income is $7,500 per period for 10 periods. The expansion is projected to disrupt operations and to lower sales by $5,000. Determine the Benefit cost ratio for the project. Consider a 8% interest rate. O 0.91 1.01 1.12 2.51

Principles of Accounting Volume 2
19th Edition
ISBN:9781947172609
Author:OpenStax
Publisher:OpenStax
Chapter11: Capital Budgeting Decisions
Section: Chapter Questions
Problem 5PB: Mason, Inc., is considering the purchase of a patent that has a cost of $85000 and an estimated...
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A coffee shop has an expansion project with a cost of
$50,000, the expected income is $7,500 per period for 10
periods. The expansion is projected to disrupt operations
and to lower sales by $5,000. Determine the Benefit cost
ratio for the project. Consider a 8% interest rate.
O 0.91
1.01
1.12
2.51
Transcribed Image Text:A coffee shop has an expansion project with a cost of $50,000, the expected income is $7,500 per period for 10 periods. The expansion is projected to disrupt operations and to lower sales by $5,000. Determine the Benefit cost ratio for the project. Consider a 8% interest rate. O 0.91 1.01 1.12 2.51
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