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Compare the following alterntives given a market rate of 5.45% per year and an inflation rate of 3% per year. Use first the B/C method
- Compare the following alterntives given a market rate of 5.45% per year and an inflation rate of 3% per year. Use first the B/C method to determine feasibility and then the incremental B/C method to determine the oprimum level of investment.
| Alt | Construction Cost $ | Annual Benefits $/yr | Life yrs |
| A | 105,000 | 40,000 | 5 |
| B | 230,000 | 52,000 | 6 |
| C | 350,000 | 64,000 | 7 |
| D | 600,000 | 100,000 | 8 |
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Canadian Multinationals And International Finance
Authors: Gregory P. Marchildon, Duncan McDowall
1st Edition
0714634816, 978-0714634814
