A project costing $200,000 in year 0 (no discount) that produces a net benefit o

Question

A project costing $200,000 in year 0 (no discount) that produces a net benefit of $50,000 per year for five years when the discount rate is 5%, calculate the;
























































(a)   Net Present Value,











(b)   Internal Rate of Return,











,   and (c) Benefit Cost Ratio for   this project,









and   indicate your recommendation (accept and reject this project) under each   circumstance.
























































A project costing $200,000 in year 0 (no discount) that produces a net benefit of $50,000 per year for five years when the discount rate is 5%, calculate the;
























































(a)   Net Present Value,











(b)   Internal Rate of Return,











,   and (c) Benefit Cost Ratio for   this project,









and   indicate your recommendation (accept and reject this project) under each   circumstance.

Explanation / Answer

A
NPV(5%) = P.V. of revenue

Related Questions

Navigate

• Browse (All)
• Browse A
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.