24. The cash flow details of a public project is as follows Initial cost /investment = BD 250000 Annual benefits/revenues BD 120000 Worth of annual cost = BD 12,000 Salvage value = BD 150000 Interest rate per year = 8% and useful lie = 30 Years

Managerial Economics: Applications, Strategies and Tactics (MindTap Course List)
14th Edition
ISBN:9781305506381
Author:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris
Publisher:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris
Chapter17: Long-term Investment Analysis
Section: Chapter Questions
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Q4. The cash flow details of a public project is as follows
Initial cost /investment
BD 250000
Annual benefits/revenues
= BD 120000
Worth of annual cost
BD 12,000
Salvage value
= BD 150000
Interest rate per year = 8% and useful lie = 30 Years
Use the three project evaluation methods( PW, FW, AW)
and put your decision after every solution.
Prepare the cash flow diagram.
Transcribed Image Text:Q4. The cash flow details of a public project is as follows Initial cost /investment BD 250000 Annual benefits/revenues = BD 120000 Worth of annual cost BD 12,000 Salvage value = BD 150000 Interest rate per year = 8% and useful lie = 30 Years Use the three project evaluation methods( PW, FW, AW) and put your decision after every solution. Prepare the cash flow diagram.
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