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

Question

Question

business economics

Answer 1

Answer #1

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

= 40000 *0.222850 + 4000 - 5000*0.072850

= 12549.75

EUAB = 18733

B/C= EUAB / EUAC

= 18733 / 12549.75

= 1.4927 ~ 1.49

option a is correct answer

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Answer 2

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