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Exercise 4 One of the two projects -A or B-must be selected. What is the maximum initial cost of project B to make it the
Exercise 4 One of the two projects -A or B-must be selected. What is the maximum initial cost of project B to make it the better of the two ? Use the incremental B C ratio method and an Project interest rate of 9% per year A Initial Cost, $ 1,200,000 M&O costs, $/yr 80,000 195,000 Benefits, $/yr 520,000 980,000 Disbenefits, $/yr 90,000 340,000 Project Life, yrs 10 15
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