An alternative with an infinite life has a B/C ration of 1.5. The alternative has benefits of P50,000 per year and annual maintenance costs of P10,000 per year. The initial cost of the alternative at an interest rate of 10% per year is closes to which value? Select one: O a. P233,000 o b. P23,300 o c. P85,400 o d. P146,100

Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
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An alternative with an infinite life has a B/C ration of 1.5. The alternative has benefits of
P50,000 per year and annual maintenance costs of P10,000 per year. The initial cost of the
alternative at an interest rate of 10% per year is closes to which value?
Select one:
O a. P233,000
o b. P23,300
o c. P85,400
o d. P146,100
Transcribed Image Text:An alternative with an infinite life has a B/C ration of 1.5. The alternative has benefits of P50,000 per year and annual maintenance costs of P10,000 per year. The initial cost of the alternative at an interest rate of 10% per year is closes to which value? Select one: O a. P233,000 o b. P23,300 o c. P85,400 o d. P146,100
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