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1.) Calculate the Benefit-Cost Ratio for the following Investment B, assuming an annual discount rate of...

1.) Calculate the Benefit-Cost Ratio for the following Investment B, assuming an annual discount rate of 14%.

C=10,000 C=8,000 C=6,000 I=7,500 I=7,500 ... I=7,500 L=10,000
0 1 2 3 4 ... 10

C: Cost, I:Income, L: Salvage value

2.)

Calculate the Present Value Ratio for the following Investment C, assuming an annual discount rate of 12%.

C=10,000 C=8,000 C=6,000 I=7,500 I=7,500 ... I=7,500 L=8,000
0 1 2 3 4 ... 10

C: Cost, I:Income, L: Salvage value

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D183 xfc-SUM(D172:D179)/SUM(D169:D171)*-1 167 Year! Cash flows | PVIF@14% | Discounted cash flows 168 169 0(10,000) 170 1 $(8,000) 171 2$(6,000 172 3 $ 7,500 173 4$ 7,500 1745$ 7,500 175 6 $ 7,500 176 7 7,500 177 8 $ 7,500 178 9 7,500 179 10 17,500 180 181 182 AxB 1.000 $ 0.877 |$ 0.769 $ 0.675 $ 0.592 S 0.519 $ 0.456 $ 0.400 $ 0.351 S 0.308 $ 0.270 S 10,000 7,018 4,61 5,062 4,441 3,895 3,417 2,997 2,629 2,306 4,721 NPV- 7,834 183 Benefit-Cost ratio 1.36

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