Example 9-3 Choose the best option using the B/C analysis. Each project has a service life of 20 years and assume a 6% interest rate and a budget of $5,000. A B C DE F Cost $4,000 $2,000 $6,000 $1,000 $9,000 $10,000 PW of Benefit $7,330 $4,700 $8,730 B/C 1.83 2.35 1.46 1.34 $1,340 $9,000 $9,500 1.0 0.95
Example 9-3 Choose the best option using the B/C analysis. Each project has a service life of 20 years and assume a 6% interest rate and a budget of $5,000. A B C DE F Cost $4,000 $2,000 $6,000 $1,000 $9,000 $10,000 PW of Benefit $7,330 $4,700 $8,730 B/C 1.83 2.35 1.46 1.34 $1,340 $9,000 $9,500 1.0 0.95
Managerial Economics: Applications, Strategies and Tactics (MindTap Course List)
14th Edition
ISBN:9781305506381
Author:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris
Publisher:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris
Chapter17: Long-term Investment Analysis
Section: Chapter Questions
Problem 10E
Question
Am. 116.
![Example 9-3
Choose the best option using the B/C analysis. Each project has a service life of 20 years and assume a
6% interest rate and a budget of $5,000.
A
B C
DE
F
Cost
$4,000 $2,000 $6,000 $1,000 $9,000 $10,000
PW of Benefit $7,330 $4,700 $8,730
B/C
1.83 2.35
1.46
1.34
$1,340 $9,000 $9,500
1.0 0.95](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F95375f6c-efb6-4b9b-9f4f-88a33b86e521%2F498a58fc-24de-4d3e-a193-29309c4acf0b%2F7m6p9g_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Example 9-3
Choose the best option using the B/C analysis. Each project has a service life of 20 years and assume a
6% interest rate and a budget of $5,000.
A
B C
DE
F
Cost
$4,000 $2,000 $6,000 $1,000 $9,000 $10,000
PW of Benefit $7,330 $4,700 $8,730
B/C
1.83 2.35
1.46
1.34
$1,340 $9,000 $9,500
1.0 0.95
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