Qwhich project will be the best using (EAW).SUsing the Benefit-Cost Ratio Method, Find what is the best alternative from the projects listed below ifu know that (-10%) for both project.DetailsInitial investment (CU)Annual revenue (CU/year)Annual expense (CU/year)Project life (year)Investment due to replacement ofsome machines every 3 years.Salvage value (CU)Purchasing a new machine in theseventh year.0-113 000Alternative 1300 00050 00015500130 000513 500Q5:A person is planning a new business, the initial investment and cash flow pattern for a new business areshown below:NonNon2YearCash flow(CU)The expected life of the project is five year.Find the rate of return for a new business.30 000330 000Alternative 2200 00075 00029 00010Non430 00022 00013 000530 000

The project was decided based on the project having higher npv

P Q Using the Benefit-Cost Ratio Method, Find what is the best alternative from the projects listed below if u know that (-10%) for both project. Details Initial investment (CU) Annual revenue (CU/year) Annual expense (CU/year) Project life (year) Investment due to replacement of some machines every 3 years. Salvage value (CU) Purchasing a new machine in the seventh year. Alternative 1 300 000 50 000 15 500 5 13 500 Non Non Alternative 2 200 000 75 000 29 000 10 Non 22 000 13 000

P Q Using the Benefit-Cost Ratio Method, Find what is the best alternative from the projects listed below if u know that (-10%) for both project. Details Initial investment (CU) Annual revenue (CU/year) Annual expense (CU/year) Project life (year) Investment due to replacement of some machines every 3 years. Salvage value (CU) Purchasing a new machine in the seventh year. Alternative 1 300 000 50 000 15 500 5 13 500 Non Non Alternative 2 200 000 75 000 29 000 10 Non 22 000 13 000

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter11: Capital Budgeting Decisions

Section: Chapter Questions

Problem 9PA: Pitt Company is considering two alternative investments. The company requires a 12% return from its...

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