BCR of \$180,000 investment yielding \$60,000 annual benefits at 7% annually

Date of Exam

\$180,000 was spent on the project that yields annual benefit of \$60,000 for a period of 8 years without any salvage value. Determine the benefit-to-cost ratio considering the cost of money to be 7%.

A.   1.99 C.   1.57
B.   2.21 D.   2.63


Answer Key