Essentials Of Investments
Essentials Of Investments
11th Edition
ISBN: 9781260013924
Author: Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher: Mcgraw-hill Education,
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One of four mutually exclusive alternatives below must be selected. First cost & BTCF
(Before Tax Cash Flow) values of the alternatives are given in the Table. Equal life of the
alternatives is 10 years but the value of the investment (first cost) will not diminish with time.
Alternative
First Cost
ROR on Incremental Investment
B
Annual BTCF
C
2,000
3,000
4,000
-100
В
150
320
D
5,000
450
i. Find the value of ROR (Rate of Return) on incremental investment and fill the table.
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Transcribed Image Text:One of four mutually exclusive alternatives below must be selected. First cost & BTCF (Before Tax Cash Flow) values of the alternatives are given in the Table. Equal life of the alternatives is 10 years but the value of the investment (first cost) will not diminish with time. Alternative First Cost ROR on Incremental Investment B Annual BTCF C 2,000 3,000 4,000 -100 В 150 320 D 5,000 450 i. Find the value of ROR (Rate of Return) on incremental investment and fill the table.
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