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What is the 5-year Benefit-Cost-Ratio (BCR) at 5% interest rate for an equipment project with the immediate installation cost of -$2500 (in year 0) and a maintenance cost of -$1500 in year 3, and annual benefit of $1000 from the first year onward (n=1 to 5)? Select one: O A. 1.20 OB. 1.16 OC. 1.14. OD. 1.15 27

What is the 5-year Benefit-Cost-Ratio (BCR) at 5% interest rate for an equipment project with the immediate installation cost of -$2500 (in year 0) and a maintenance cost of -$1500 in year 3, and annual benefit of $1000 from the first year onward (n=1 to 5)? Select one: O A. 1.20 OB. 1.16 OC. 1.14. OD. 1.15 27

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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What is the 5-year Benefit-Cost-Ratio (BCR) at 5% interest rate for an equipment project with the immediate installation cost of -$2500 (in year 0) and a maintenance cost of -$1500 in year 3, and annual benefit of $1000 from the first year onward (n=1 to 5)? Select one: OA. 1.20 OB. 1.16 OC. 1.14 OD. 1.15 OE. 1.17 13
Transcribed Image Text:What is the 5-year Benefit-Cost-Ratio (BCR) at 5% interest rate for an equipment project with the immediate installation cost of -$2500 (in year 0) and a maintenance cost of -$1500 in year 3, and annual benefit of $1000 from the first year onward (n=1 to 5)? Select one: OA. 1.20 OB. 1.16 OC. 1.14 OD. 1.15 OE. 1.17 13
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