An alternative has the following cash flows: Benefits of $50,000 per year; Disbenefits of $27,000 per year; Initial cost of $250,000; M&O costs of $10,000 per.year. If the alternative has an infinite life and the interest rate is 5% per year. What is the B/C ratio for this alternative? O 0.91 1.02 O 1.16 O 0.58 73

An alternative has the following cash flows: Benefits of $50,000 per year; Disbenefits of $27,000 per year; Initial cost of $250,000; M&O costs of $10,000 per.year. If the alternative has an infinite life and the interest rate is 5% per year. What is the B/C ratio for this alternative? O 0.91 1.02 O 1.16 O 0.58 73

Financial And Managerial Accounting

15th Edition

ISBN:9781337902663

Author:WARREN, Carl S.

Publisher:WARREN, Carl S.

Chapter26: Capital Investment Analysis

Section: Chapter Questions

Problem 3CMA

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