Beruflich Dokumente
Kultur Dokumente
1
Future Worth Analysis
Benefit-Cost (B/C) Ratio Analysis
Payback Period/Time
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Part I
3
Future Worth Analysis
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Example 1
Solution:
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Example 2
6
Example 2
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Benefit-Cost Ratio Analysis
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Benefit-Cost Ratio Analysis
o or
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Example 3
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Recall: Example 1 in PW Analysis
Example 3
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Example 4
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Example 4: Solution
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Example 4: Solution cont.
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Example 4: Solution cont.
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Example 5
Consider six mutually exclusive alternatives A-F. They have
20 year useful lives and no salvage value. If the minimum
attractive rate if return is 6%, which alternatives should be
selected?
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Example 5: Solution
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Example 5: Solution cont.
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Part II
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Payback Period
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Example 6
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Example 6: Solution
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Example 7
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Example 7: Solution cont.