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Calculate the benefit-to-cost ratio of a project that invol cash flow:

Calculate the benefit-to-cost ratio of a project that invol cash flow:

Essentials Of Investments
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
Section: Chapter Questions
Problem 1PS
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Calculate the benefit-to-cost ratio of a project that involves the following cash flow: Initial Cost $300 Uniform $110 (first five years) Annual $120 (year six to year ten) Benefit $135 (year 11 to year 15) Assume a 9% interest rate. O 1.2 O 2.7 O 1.36 O 0.95 O 3.5 О 32
Transcribed Image Text:Calculate the benefit-to-cost ratio of a project that involves the following cash flow: Initial Cost $300 Uniform $110 (first five years) Annual $120 (year six to year ten) Benefit $135 (year 11 to year 15) Assume a 9% interest rate. O 1.2 O 2.7 O 1.36 O 0.95 O 3.5 О 32
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