For the two independent projects shown, determine which, if any, should be funded at i = 10% per year using the B/C ratio method:
B/CX = (110,000 – 20,000)/(60,000 + 45,000)
= 0.86 Reject X
B/CY = (150,000 – 45,000)/(90,000 + 35,000)
= 0.84 Reject Y
Answer is (a)
Trades & Technology
You might also like to view...
What are the two different kinds of CHP systems?
What will be an ideal response?
Trades & Technology
Briefly describe three key downtime metrics.
What will be an ideal response?
Trades & Technology
Schematics in industry may contain several pages.
Answer the following statement true (T) or false (F)
Trades & Technology
Are the long ends of horizontal wood siding members lapped or butt-jointed?
What will be an ideal response?
Trades & Technology