Find the best alternative

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
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Given question 9% is not the grade 

The table below represents two
alternatives for construction projects B
and A .
Find the best alternative by way of a cost-
benefit (C/B) ratio of 9%.
alternative
A
B.
Initial investment value (P) $ 15000
Annual revenue $
Annual maintenance and
20000
6000
8000
2000
3000
taxes $
redeemable value $
useful life (year)
4000
6000
Transcribed Image Text:The table below represents two alternatives for construction projects B and A . Find the best alternative by way of a cost- benefit (C/B) ratio of 9%. alternative A B. Initial investment value (P) $ 15000 Annual revenue $ Annual maintenance and 20000 6000 8000 2000 3000 taxes $ redeemable value $ useful life (year) 4000 6000
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