Homework Answers
Present value of incremental benefits = -250,000 - (-950,000) = 700,000(P/F, 8%, 6) = 441,118.74
Present value of incremental cost = -800,000 - (-600,000) - 70,000 - (-50,000) = -200,000 - 20,000(P/A, 8%, 6) = -200,000 - 196,363 = -396,363
Benefit - cost ratio = 441,118.74 / 396,363 = 1.11.
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4. Apply incremental conventional B/C analysis at an interest rate of 8% per year to determine...
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Please help in this question all parts
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Please help in this question all parts
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