Question
The following table shows the costs and benefits of a proposed project over the next five years. Using a 4% discount rate, calculate the Net
The following table shows the costs and benefits of a proposed project over the next five years. Using a 4% discount rate, calculate the Net Present Value (NPV) and Benefit Cost Ration (BCR) for the project.
year | costs | benefits
|
year 1 | 950 | 147 |
year 2 | 845 | 564 |
year 3 | 367 | 827 |
year 4 | 497 | 697 |
year 5 | 856 | 1506 |
total | 3515 | 3741 |
Use the data in the attached excel document to answer the following questions. Use a discount rate of 4%. For questions 7 & 8, round your answer to the nearest whole dollar (example: 5048). For question 9 & 10, round your answer to 2 decimal places (example: 0.84).
What is the total present value of costs?
What is the total present value of benefits?
What is the Net Present Value (NPV) of the project?
What is the Benefit-Cost Ratio (BCR) of the project?
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