Answered: Determine the B/C ratio for the…

Determine the B/C ratio for the following project. First Cost = P100, 000 Project life, years = 5 Salvage value = P10, 000 Annual benefits = P60, 000 Annual O and M = P22, 000 Interest rate= 15%

EBK CFIN

6th Edition

ISBN:9781337671743

Author:BESLEY

Publisher:BESLEY

Chapter9: Capital Budgeting Techniques

Section: Chapter Questions

Problem 6PROB

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Question

Determine the B/C ratio for the following project.
First Cost = P100, 000
Project life, years = 5
Salvage value = P10, 000
Annual benefits = P60, 000
Annual O and M = P22, 000
Interest rate= 15%

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