A consultant, after 3 months of work, reported that the modified B/C ratio for a city-owned hospital heliport project is 2. If the initial cost is $2.1 million and the annual benefits are $165,000, what is the amount of the annual M&O costs used in the calculation? The report stated that a discount rate of 5% per year and an estimated life of 40 years were used. The M&O cost is $
A consultant, after 3 months of work, reported that the modified B/C ratio for a city-owned hospital heliport project is 2. If the initial cost is $2.1 million and the annual benefits are $165,000, what is the amount of the annual M&O costs used in the calculation? The report stated that a discount rate of 5% per year and an estimated life of 40 years were used. The M&O cost is $
Chapter1: Making Economics Decisions
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![A consultant, after 3 months of work, reported that the modified B/C ratio for a city-owned hospital heliport project is 2. If the initial cost
is $2.1 million and the annual benefits are $165,000, what is the amount of the annual M&O costs used in the calculation? The report
stated that a discount rate of 5% per year and an estimated life of 40 years were used.
The M&O cost is $](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F46594b00-1cb7-4870-b1cf-15a6b41c5a65%2Fc5e61e67-a5f9-4029-bc10-85ecffbacd2e%2F0nk3cma_processed.png&w=3840&q=75)
Transcribed Image Text:A consultant, after 3 months of work, reported that the modified B/C ratio for a city-owned hospital heliport project is 2. If the initial cost
is $2.1 million and the annual benefits are $165,000, what is the amount of the annual M&O costs used in the calculation? The report
stated that a discount rate of 5% per year and an estimated life of 40 years were used.
The M&O cost is $
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