If cash flow for  a project are as follows, YEAR 0 1 2 3 4 BENEFITS -100000 25000 40000 40000 50000 the discount rate is 12% find The benefit cost Ratio of the project  the net benefit cost ratio of the project Should the investor invest in the project

Financial Management: Theory & Practice
16th Edition
ISBN:9781337909730
Author:Brigham
Publisher:Brigham
Chapter11: Cash Flow Estimation And Risk Analysis
Section: Chapter Questions
Problem 7MC: Calculate the project cash flows for each year. Based on these cash flows and the average project...
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If cash flow for  a project are as follows,

YEAR 0 1 2 3 4
BENEFITS -100000 25000 40000 40000 50000

the discount rate is 12% find

  1. The benefit cost Ratio of the project 
  2. the net benefit cost ratio of the project
  3. Should the investor invest in the project
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