You have been tasked to conduct a conventional B/C analysis for a security system upgrade at your organization. Using a discount rate of 9% p.a. and the data provided below, determine if the project is justified. Item Cash Flow First cost, $ 25,000 AW of benefits, $/year 3,800 FW of disbenefits, year 20, $ 6,750 O&M costs, $/year 400 Life, years 20
You have been tasked to conduct a conventional B/C analysis for a security system upgrade at your organization. Using a discount rate of 9% p.a. and the data provided below, determine if the project is justified. Item Cash Flow First cost, $ 25,000 AW of benefits, $/year 3,800 FW of disbenefits, year 20, $ 6,750 O&M costs, $/year 400 Life, years 20
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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You have been tasked to conduct a conventional B/C analysis for a security system upgrade at your organization. Using a discount rate of 9% p.a. and the data provided below, determine if the project is justified.
|
Item |
Cash Flow |
|
First cost, $ |
25,000 |
|
AW of benefits, $/year |
3,800 |
|
FW of disbenefits, year 20, $ |
6,750 |
|
O&M costs, $/year |
400 |
|
Life, years |
20 |
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