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Yupi company is considering investing in Project A or Project B. Project A generates the following cash flows: year zero = 389 dollars (outflow); year
Yupi company is considering investing in Project A or Project B. Project A generates the following cash flows: year zero = 389 dollars (outflow); year 1 = 272 dollars (inflow); year 2 = 299 dollars (inflow); year 3 = 396 dollars (inflow); year 4 = 127 dollars (inflow). Project B generates the following cash flows: year zero = 230 dollars (outflow); year 1 = 120 dollars (inflow); year 2 = 100 dollars (inflow); year 3 = 200 dollars (inflow); year 4 = 120 dollars (inflow). The MARR is 12 %. Compute the Benefit/Cost ratio of the BEST project.
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