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    Aybike Özyüksel Çiftçioğlu
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    This document compares two companies based on their present values of benefits and costs over a 10 year period. Company 1 has a present value of benefits of $102,929.04 and present value of costs of $129,471.30, resulting in a benefit-cost ratio of 0.79. Company 2 has a present value of benefits of $23,469.04 and present value of costs of $107,356.52, resulting in a benefit-cost ratio of 0.22. Based on the higher benefit-cost ratio, the document indicates Company 1 is the preferred choice.

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    Answer paper of exam

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    This document compares two companies based on their present values of benefits and costs over a 10 year period. Company 1 has a present value of benefits of $102,929.04 and present value of costs of $129,471.30, resulting in a benefit-cost ratio of 0.79. Company 2 has a present value of benefits of $23,469.04 and present value of costs of $107,356.52, resulting in a benefit-cost ratio of 0.22. Based on the higher benefit-cost ratio, the document indicates Company 1 is the preferred choice.

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    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
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    3 views2 pages

    Answer Key

    Uploaded by

    Aybike Özyüksel Çiftçioğlu
    This document compares two companies based on their present values of benefits and costs over a 10 year period. Company 1 has a present value of benefits of $102,929.04 and present value of costs of $129,471.30, resulting in a benefit-cost ratio of 0.79. Company 2 has a present value of benefits of $23,469.04 and present value of costs of $107,356.52, resulting in a benefit-cost ratio of 0.22. Based on the higher benefit-cost ratio, the document indicates Company 1 is the preferred choice.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Flag for inappropriate content
    of 2

    M1 ($) G1 ($) S1 ($) MO1 ($) M2 ($) G2 ($) S2 ($) M02 ($) i (%) N (yıl) DM BCA

    120000 8000 30000 1000 60000 2000 5000 5000 1,0 10 PRESENT B/C

    First Company
    All Benefits
    Present or uniform value for G1 value = B1 B1= 75.770,44 (12p)
    B1+B2= 102.929,04 (2p)
    Present or uniform value for S1 value =B2 B2= 27.158,61 (7p)

    All Costs
    Present or uniform value for M1 value = C1 C1= 120.000,00 (3p)
    C1+C2= 129.471,30 (2p)
    Present or uniform value for MO1 value = C2 C2= 9.471,30 (12p) (10p)
    ΣB/ΣC or ΣB-ΣC= 0,79
    Second Company
    All Benefits
    Present or uniform value for G1 value = B1 B1= 18.942,61 (12p)
    B1+B2= 23.469,04 (2p)
    Present or uniform value for S1 value =B2 B2= 4.526,43 (7p)

    All Costs
    Present or uniform value for M1 value = C1 C1= 60.000,00 (3p)
    C1+C2= 107.356,52 (2p)
    Present or uniform value for MO1 value = C2 C2= 47.356,52 (12p) (10p)
    ΣB/ΣC or ΣB-ΣC= 0,22
    1 2
    Which company do you prefer? ( Put the right answer "+" sign )
    +
    (4p)
    75.770,44 12
    102.929,04 2
    27.158,61 7
    0,79 10

    120.000,00 3
    129.471,30 2
    9.471,30 12

    4 100
    18.942,61 12
    23.469,04 2
    4.526,43 7
    0,22 10

    60.000,00 3
    107.356,52 2
    47.356,52 12

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