Cost Benefit Practice Solution

31 75310 10000 130099 35124 173 10246 029 bwins

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Unformatted text preview: Benefits Cost Project A‐B Benefits $ 75,000 $ 10,000 $140,345 1.31 $75,310 $ 10,000 $130,099 $35,124 1.73 $10,246 ‐0.29 B Wins Project A Year Cost 0 Project B Benefits $ 110,000 Cost Project A‐B Benefits Cost Benefits 1 $ ‐ $ 61,000 $ ‐ $ 14,000 $ 35,000 $ ‐ $ $ ‐ 47,000 2 $ ‐ $ 36,000 $ ‐ $ 38,000 $ ‐ $ (2,000) 3 $ ‐ $ 20,000 $ ‐ $ 45,000 $ ‐ $ (25,000) $ ‐ $ 35,000 $ ‐ $ (26,000) $ 4,000 $7,017 4 $ 75,000 $ ‐ $ 9,000 5 $ 20,000 $ 39,000 $ 10,000 $ 35,000 $ 10,000 NPV $ 97,582 $130,596 $91,209 $123,579 $51,209 B/C Ratio 1.34 1.35 ‐0.14 B Wins...
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