Calculate the benefit cost ratio

Assignment Help Finance Basics
Reference no: EM133114598

Your firm is considering the following 3 mutually exclusive alternatives. Interest rate is 10%.

Calculate the Benefit Cost ratio of each alternative.

 

A

B

C

Initial Cost

$35,000.00

$21,000.00

$42,000.00

Annual Benefit

$4,200.00

$3,300.00

$5,000.00

Salvage Value

$0

$1,000.00

$1,500.00

Project Life

Forever

20 year 

50 year

Reference no: EM133114598

Questions Cloud

How would you perform arbitrage : In relation to equity markets; Give example of how would you perform arbitrage (on an index, stock or bond).
What is your break-even quantity : Your primary care clinic had these costs during fiscal year 2015- You are actually paid $140 per PCP visit. What is your Break-even quantity
Process of the fundamental approach : 1. Describe the process of the fundamental approach to valuation and how this differs to the cheap (simple) methods.
Sense for the cavalier fund : How preferred stocks makes the most sense for the Cavalier Fund?
Calculate the benefit cost ratio : Your firm is considering the following 3 mutually exclusive alternatives. Interest rate is 10%.
Leadership in the modern nation state system : a) International relations play a central role in promoting peace in the world. Discuss strategies that the United Nations(UN) as an institution has put in plac
Calculate the fixed overhead spending variance for November : The company purchased 81,400 yards of fabric and used 93,000 yards of fabric during the month. Calculate the fixed overhead spending variance for November
Weighted average cost of capital for firm : A firm has 100 bonds outstanding with 10 years until maturity. The bonds pay an annual coupon, a coupon rate of 3%, a face value of $1,000, and a yield to matur
Credit cooperatives on collection of loans : Please help me give fifteen (15) risks/problems encountered by credit cooperatives on collection of loans/payments.

Reviews

Write a Review

Finance Basics Questions & Answers

  What is the current bond price

If the YTM on these bonds is 8.4 percent, what is the current bond price?

  Your company a leading farm equipment manufacturing

assignment 1deficit balance of paymentsyour company a leading farm equipment manufacturing multinational has a

  Miller is evaluating a plan to brew and market a new porter

miller is evaluating a plan to brew and market a new porter beer in europe. the new beer will be test marketed for 1

  What is the value of the stock for you

Dividends are expected to grow at an annual rate of 6.40 percent for an indefinite number of years. If your required rate of return is 9.30 percent, what is the value of the stock for you?

  Which plan will result in the higher eps

Contrail Air, Inc., is looking at two capital structures. Plan A is an all equity with 500,000 shares outstanding

  What is the theoretical value of the call?

What is the theoretical value of the call?

  A company is considering a new inventory system that will

a company is considering a new inventory system that will cost 120000. the system is expected to generate positive cash

  Something about fixing a big ship

In 2013 Carnival Cruise Lines decided to sell some new bonds (something about fixing a big ship). They sold the bonds for $1,000 (face value) with a 20 year maturity and an 8% coupon. Two years have passed.

  Calculate all of the ratios

Dan Ervin was recently employed by East Coast Yachts to assist the company with its short-term financial planning and also to evaluate the company?s financial performance.

  Direct materials variances

Bandar Industries Berhad of Malaysia manufactures sporting equipment. One of the company's products, a football helmet

  Repurchase of shares

What is the total market value of the equity after the repurchase? What is the per-share value after the repurchase?

  Propose the fair price for a zero-coupon bond

You are looking at the valuation of some risk-free government bonds. It has been observed that the current 3-year discount factor for risk-free cash flows is 0.

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