24. The cash flow details of a public project is as follows Initial cost /investment = BD 250000 Annual benefits/revenues BD 120000 Worth of annual cost = BD 12,000 Salvage value = BD 150000 Interest rate per year = 8% and useful lie = 30 Years

24. The cash flow details of a public project is as follows Initial cost /investment = BD 250000 Annual benefits/revenues BD 120000 Worth of annual cost = BD 12,000 Salvage value = BD 150000 Interest rate per year = 8% and useful lie = 30 Years

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Question

100%

Q4. The cash flow details of a public project is as follows
Initial cost /investment
BD 250000
Annual benefits/revenues
= BD 120000
Worth of annual cost
BD 12,000
Salvage value
= BD 150000
Interest rate per year = 8% and useful lie = 30 Years
Use the three project evaluation methods( PW, FW, AW)
and put your decision after every solution.
Prepare the cash flow diagram.

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