Determine the benefit cost ratio for the project


Problem:

A recent project nominated for consideration at your company has a four-year cash flow of $20,000; $25,000; $30,000; and $50,000. The cost of the project is $75,000.

Required:

Question 1) What is the benefit cost ratio for the project? Solve the problem and show all work.

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Operation Management: Determine the benefit cost ratio for the project
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