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Question # 2 show complete mathematical working Given the budget options. Apply the following rules and make decision for fixed budget of Rs. 1400000. 1) Rank projects with B/C ratio 2) Rank projects on the basis of largest net benefits (figures are in Rs. 000): Also calculate marginal benefit cost ratio. Also mention that which method is better and why: Projects Cost (C) Benefits (B) 400 800 290 350 160 208 4. 100 250 600 840 610 660 250 200

Question # 2 show complete mathematical working Given the budget options. Apply the following rules and make decision for fixed budget of Rs. 1400000. 1) Rank projects with B/C ratio 2) Rank projects on the basis of largest net benefits (figures are in Rs. 000): Also calculate marginal benefit cost ratio. Also mention that which method is better and why: Projects Cost (C) Benefits (B) 400 800 290 350 160 208 4. 100 250 600 840 610 660 250 200

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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Question # 2 show complete mathematical working Given the budget options. Apply the following rules and make decision for fixed budget of Rs. 1400000. 1) Rank projects with B/C ratio 2) Rank projects on the basis of largest net benefits (figures are in Rs. 000): Also calculate marginal benefit cost ratio. Also mention that which method is better and why: Projects Cost (C) Benefits (B) 1 400 800 2 290 350 160 208 100 250 600 840 6. 610 660 250 200
Transcribed Image Text:Question # 2 show complete mathematical working Given the budget options. Apply the following rules and make decision for fixed budget of Rs. 1400000. 1) Rank projects with B/C ratio 2) Rank projects on the basis of largest net benefits (figures are in Rs. 000): Also calculate marginal benefit cost ratio. Also mention that which method is better and why: Projects Cost (C) Benefits (B) 1 400 800 2 290 350 160 208 100 250 600 840 6. 610 660 250 200
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