Solution-Estimating the benefit-cost ratio

Estimating the benefit-cost ratio

Reference no: EM132510078

An education project costs 10,000 this year and 20,000 next year, but yields benefits worth 500,000 ten years from now. If the discount rate is 10%, what is the net present value of this project (assume all costs/benefits are earned at the beginning of the year)? What is the benefit-cost ratio? Is the internal rate of return 30%, 35% or 40%?

Reference no: EM132510078

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Estimating the benefit-cost ratio

Reference no: EM132510078

Reference no: EM132510078

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