BENEFIT-COST RATIO ANALYSIS Solve the following problems and show complete solutions. 1. Determine the life Y of alternative A so that the two alternatives will be equally desirable, assuming an interest rate of 9% and no salvage value for either alternative. Alternative A B Cost P8,400 P12,500 Annual benefit 1,600 3,000 Life (years) Y 7

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Chapter1: Financial Statements And Business Decisions
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BENEFIT-COST RATIO ANALYSIS
Solve the following problems and show complete solutions.
1. Determine the life Y of alternative A so that the two
alternatives will be equally desirable, assuming an interest
rate of 9% and no salvage value for either alternative.
Alternative
А
Cost
P8,400 P12,500
Annual benefit 1,600 3,000
Life (years)
Y 7
Transcribed Image Text:BENEFIT-COST RATIO ANALYSIS Solve the following problems and show complete solutions. 1. Determine the life Y of alternative A so that the two alternatives will be equally desirable, assuming an interest rate of 9% and no salvage value for either alternative. Alternative А Cost P8,400 P12,500 Annual benefit 1,600 3,000 Life (years) Y 7
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