Question
Suppose you are considering a project has an initial cost of $750 that has an ongoing benefit of $240. Further, there is an ongoing cost
Suppose you are considering a project has an initial cost of $750 that has an ongoing benefit of $240. Further, there is an ongoing cost that is equal to $80, which increases by $10 each year. Assume the project lasts 6 years. If the appropriate discount rate is 6.5%. Calculate: a) the Net Present Value =$ b) the Benefit Cost Ratio = c) should the project be accepted or rejected? Explain your answer using the information from part a) and b). Answer =( accept/reject ) Provide your answers to two decimal places. Do not include any commas (, ) "$" or "%" in your answers. Ensure to show all your working in your spreadsheet.
c) should the project be accepted or rejected? Explain your answer using the information from part a) and b). Answer =( accept/reject ) Provide your answers to two decimal places. Do not include any commas (, , " "\$" or "\%" in your answers. Ensure you show all your working in your spreadsheetStep by Step Solution
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