Consider a piece of equipment that has the following cost and benefit estimates, and the interest rate is 15% per year:
Initial investment: $200,000
Equipment life: 10 years
Salvage value: $10,000
Annual receipts: $100,000
Annual expenses: $50,000
What is the modified (B)/(C) ratio of this equipment?
Click the icon to view the interest and annuity table for discrete compounding when i=15% per year.
Thr modified cost-benefit ratio is (Round to two decimal places.)
According to the B-C ratio method, the project is
Consider a piece of equipment that has the following cost and benefit estimates, and the interest rate is 15% per year: Initial investment:$200,000 Equipment life: 10 years Salvage value: $10,000 Annual receipts: $100,000 Annual expenses: $50,000 What is the modified B/C ratio of this equipment?
X
More Info
Discrete Compounding: i=15% Single Payment Uniform Series Compound Compound Sinking Capital Amount Present Amount Present Fund Recovery Factor Worth Factor Factor Worth Factor Factor Factor To Find F To Find P To Find F To Find P To Find A To Find A Given P Given F Given A Given A Given F Given P F/P P/F F/A P/A A/F A/P 1.1500 0.8696 1.0000 0.8696 1.0000 1.1500 1.3225 0.7561 2.1500 1.6257 0.4651 0.6151 1.5209 0.6575 3.4725 2.2832 0.2880 0.4380 1.7490 0.5718 4.9934 2.8550 0.2003 0.3503 2.0114 0.4972 6.7424 3.3522 0.1483 0.2983 2.3131 0.4323 8.7537 3.7845 0.1142 0.2642 2.6600 0.3759 11.0668 4.1604 0.0904 0.2404 3.0590 0.3269 13.7268 4.4873 0.0729 0.2229 3.5179 0.2843 16.7858 4.7716 0.0596 0.2096 4.0456 0.2472 20.3037 5.0188 0.0493 0.1993 4.6524 0.2149 24.3493 5.2337 0.0411 0.1911 5.3503 0.1869 29.0017 5.4206 0.0345 0.1845 6.1528 0.1625 34.3519 5.5831 0.0291 0.1791 7.0757 0.1413 40.5047 5.7245 0.0247 0.1747 8.1371 0.1229 47.5804 5.8474 0.0210 0.1710 9.3576 0.1069 55.7175 5.9542 0.0179 0.1679 10.7613 65.0751 6.0472 0.0154 0.1654 12.3755 0.0808 75.8364 6.1280 0.0132 0.1632
Thr modified cost-benefit ratio is . (Round to two decimal places.)
N 1 2 3 4
According to the B-C ratio method, the project is
6 7 8 9 10 11 12 13 14 15 16 17 18
