5. Assume EUAB -$18,733 (It is not!). The Benefit Cost ratio is closest to ... A/F,...

Question

Question

business economics

Answer 1

Answer #1

EUAC = 40000 *(A/P,15%,8) + 4000 - 5000*(A/F,15%,8)

= 40000 *0.2229 + 4000 - 5000*0.0729

= 12551.50

B/C = EUAB / EUAC = 18733 / 12551.50 = 1.4924 ~ 1.49

option a is correct answer

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Answer 2

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