Present worth of costs

Assignment Help Business Economics
Reference no: EM13151308 , Length: 308 words

You are asked questions about 5 mutually exclusive candidates described as follows (all quantities are in thousands):
Candidate 1: Present worth of costs = $1,000; Present worth of benefits = $8,000
Candidate 2: Present worth of costs = $4,000; Present worth of benefits = $8,000 
Candidate 3: Present worth of costs = $4,000; Present worth of benefits = $14,000 
Candidate 4: Present worth of costs = $10,000; Present worth of benefits = $ 16,000 
Candidate 5: Present worth of costs = $12,000; Present worth of benefits = $ 24,000 
(a) Which system has the largest B/C ratio and should it be selected without further study or not? Explain. 
(b) Which system shows the largest incremental B/C ratio based on differences between alternatives? 
(c) Which system would you recommend and why?

Reference no: EM13151308

Questions Cloud

Basics of actual net-of-tax interest cost : If a company pays 8 percent interest to borrow $500,000, but is in an income tax bracket that requires it to pay 40 percent income tax, what is the actual net-of-tax interest cost that the company incurs?
Find the percentage of women that are between given range : Assuming that the heights of college women are normally distributed, with a mean of 69 inches and standard deviation of 4.8 in, what is the percentage of women that are between 69 in. and 73.8 in.?
What is the limiting reactant : What is the limiting reactant when 4.5 moles of aluminum react with 6.7 moles of oxygen gas?
What is unique about the peptide bond : If you have 10 different amino acids and want to make a polypeptide chain of 6 amino acids, how many theoretical combinations of amino acids could you make?
Present worth of costs : You are asked questions about 5 mutually exclusive candidates described as follows (all quantities are in thousands):Candidate 1: Present worth of costs = $1,000; Present worth of benefits = $8,000
Determine amortization of bond discount or premium : A corporation issues for cash $2,000,000 of 8%, 15-year bonds, interest payable annually, at a time when the market rate of interest is 7%. The straight-line method is adopted for the amortization of bond discount or premium. Which of the followin..
Calculate the theoretical and percent yield : A chemist burns 160g of aluminum oxygen to produce aluminum oxide. She produces 260g of aluminum oxide. Write a balanced equation and calculate the theoretical and percent yield
Economic income in relation to the discounted income method : What is meant by economic income in relation to the discounted income method?
How can you use caats to detect fraud : How can you use CAATs to detect fraud? What do you gain by using CAATs to detect fraud

Reviews

Write a Review

Business Economics Questions & Answers

  Illustrate the situation

Illustrate  the situation: Firm X develops a new product and gets a head start in its production. Other firms try to produce a similar product but discover they have higher average total costs than the existing firm.

  Plot demand schedule in graph below using blue point

Suppose that Jenny is the only consumer in the antique car market. Her willingness to pay for an antique car is $200,000. Based on Jenny's willingness to pay, plot demand schedule in the graph below utilizing the blue points.

  What actions might the federal government

The Federal Reserve chairman acknowledged the economy was in a recession. What actions might the federal government take to give the economy a boost?

  Which of these methods of encouraging growth

Which of these methods of encouraging growth would you suggest for the typical company in Hong Kong also Singapore

  Role of the federal reserve in mitigating the negative impac

Assess the role of the Federal Reserve in mitigating the negative impact of the 2008 financial meltdown on the economy.

  Elucidate what impact will this change have on the price

Elucidate what impact will this change have on the price level, output, and employment in the short run in the United States.

  Evaluate the price falls all of these firms will be unable

Evaluate the price falls all of these firms will be unable to stay in business and the industry will disappear by using a graph.

  Should the federal reserve change the definition of m1

They use the Internet to pay babysitters. With no cash, does the nature of money change? Should the Federal Reserve change the definition of M1?

  Other people exploit the same opportunity

If other people exploit the same opportunity, what will happen to the cost in Thailand as well as in Malaysia.

  Environmentally appropriate production technologies

Environmentally appropriate production technologies also precuts with eco friendly packaging also recyclable materials.

  Elucidate your response and show any movements in ppf

World Trade Center and Pentagon affected short and/or long-term productivity in United States. Elucidate your response and show any movements in PPF.

  Wheat producers lobby the government for a price

Assumes that wheat producers lobby the government for a price floor also receive one.

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd