Engineering Econ HW7 Q1 1. An investment opportunity has an initial cost of $1.8M and a uniform annual benefit of$400,000 over 6 years. Using a MARR of 10%, what is the benefit-cost ratio of thisopportunity? Would you recommend it be pursued? Why or why not?

Answered: 1. An investment opportunity has an…

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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1. An investment opportunity has an initial cost of $1.8M and a uniform annual benefit of $400,000 over 6 years. Using a MARR of 10%, what is the benefit-cost ratio of this opportunity? Would you recommend it be pursued? Why or why not?