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
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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
Transcribed Image Text: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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