What Is the Benefit-Cost Ratio for an Investment with the Following

question 2

Multiple Choice

What is the benefit-cost ratio for an investment with the following cash flows at a 14.5 percent required return?
$\begin{array}{cc}\hline \text { Year } & \text { Cash Flow } \\0 & \$(46,500) \\1 & \$ 12,200 \\2 & \$ 38,400 \\3 & \$ 11,300 \\\hline\end{array}$

• A) 0.94
• B) 0.98
• C) 1.02
• D) 1.06
• E) 1.11

---

Definitions:

Brevity

The quality of expressing something in very few words or being concise in speech or writing.

Two-Division Level

A structural level in organizations or competitions that divides entities or participants into two distinct groups.

Feasibility Study

An assessment of the practicality and potential success of a proposed project or system, examining aspects such as economic, technical, legal, and scheduling considerations.

Problem-Solving Reports

Documents that analyze a problem, consider solutions, and recommend actions to address the issue.