PROBLEM 1-Benefit-Cost Analysis Which is the better alternative given 9% discount rate? Alternative A Alternative B 1000 1000 1000 1000 1000 1750 1750 1750 1750 1750 1 1 3 4 5 3,000 4,500 Equation for Incremental Analysis: Better Alternative:_ - DROBLEM 2-Determine the External Rate of Return, i' Discount Rate=5% Year Cashflow PV-Cash PV-Cash Inflow Outflow (P27,500) 6,000 8,000 7,000 (4,000) 9,000 5,000 1 2 3 4 5 6. %3D %3D 65432 10
PROBLEM 1-Benefit-Cost Analysis Which is the better alternative given 9% discount rate? Alternative A Alternative B 1000 1000 1000 1000 1000 1750 1750 1750 1750 1750 1 1 3 4 5 3,000 4,500 Equation for Incremental Analysis: Better Alternative:_ - DROBLEM 2-Determine the External Rate of Return, i' Discount Rate=5% Year Cashflow PV-Cash PV-Cash Inflow Outflow (P27,500) 6,000 8,000 7,000 (4,000) 9,000 5,000 1 2 3 4 5 6. %3D %3D 65432 10
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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