Without excel Life10 Years14. Given the data for two alternatives, choose the better alternative using the B/C ratioanalysis. MARR = 8%AlternativeXYFirst cost$100,000$140,000Operating costs/year50,00060,000Benefits /year100,000120,000Dis-benefits/year30,00025,000Life in years10ed in Georgia expects a 10% after-tax rate of return on equipment

B/C ratio = PV of Benefits/PV of costs. Alternative X: initial cost = 100,000 Operating costs…

10 Years 14. Given the data for two alternatives, choose the better a analysis. MARR = 8% Alternative X Y First cost $100,000 $140,C Operating costs/year 50,000 60,00 Benefits/year 100,000 120,00 30,000 25,00 Dis-benefits/year Life in years 5 10

10 Years 14. Given the data for two alternatives, choose the better a analysis. MARR = 8% Alternative X Y First cost $100,000 $140,C Operating costs/year 50,000 60,00 Benefits/year 100,000 120,00 30,000 25,00 Dis-benefits/year Life in years 5 10

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

Without excel

Life
10 Years
14. Given the data for two alternatives, choose the better alternative using the B/C ratio
analysis. MARR = 8%
Alternative
X
Y
First cost
$100,000
$140,000
Operating costs/year
50,000
60,000
Benefits /year
100,000
120,000
Dis-benefits/year
30,000
25,000
Life in years
10
ed in Georgia expects a 10% after-tax rate of return on equipment

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