A coffee shop has an expansion project with a cost of $50,000, the expected income is $7,500 per period for 10 periods. The expansion is projected to disrupt operations and to lower sales by $5,000. Determine the Benefit cost ratio for the project. Consider a 8% interest rate. O 0.91 1.01 1.12 2.51
A coffee shop has an expansion project with a cost of $50,000, the expected income is $7,500 per period for 10 periods. The expansion is projected to disrupt operations and to lower sales by $5,000. Determine the Benefit cost ratio for the project. Consider a 8% interest rate. O 0.91 1.01 1.12 2.51
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
![A coffee shop has an expansion project with a cost of
$50,000, the expected income is $7,500 per period for 10
periods. The expansion is projected to disrupt operations
and to lower sales by $5,000. Determine the Benefit cost
ratio for the project. Consider a 8% interest rate.
O 0.91
1.01
1.12
2.51](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fa73272da-05ee-4643-9335-3d9835956144%2Fc3ad6f44-b6f6-45f1-acec-ae25980820e0%2F7aiovb_processed.jpeg&w=3840&q=75)
Transcribed Image Text:A coffee shop has an expansion project with a cost of
$50,000, the expected income is $7,500 per period for 10
periods. The expansion is projected to disrupt operations
and to lower sales by $5,000. Determine the Benefit cost
ratio for the project. Consider a 8% interest rate.
O 0.91
1.01
1.12
2.51
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