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A county will invest $4,800,000 to clean up a chemical spill that occurred following a natural disaster. At the end of the 9-ye horizon, an additional $1,200,000 will be spent in restoring the site to an environmentally acceptable condition. The investn expected to produce net annual benefits that will decrease by 25% each year. The net annual public benefit in the 1st year is to be $3,000,000. Determine the B/C ratio for the investment using a 6% MARR. Click here to access the TVM Factor Table calculator. B/C=

A county will invest $4,800,000 to clean up a chemical spill that occurred following a natural disaster. At the end of the 9-ye horizon, an additional $1,200,000 will be spent in restoring the site to an environmentally acceptable condition. The investn expected to produce net annual benefits that will decrease by 25% each year. The net annual public benefit in the 1st year is to be $3,000,000. Determine the B/C ratio for the investment using a 6% MARR. Click here to access the TVM Factor Table calculator. B/C=

CONCEPTS IN FED.TAX.,2020-W/ACCESS
CONCEPTS IN FED.TAX.,2020-W/ACCESS
20th Edition
ISBN:9780357110362
Author:Murphy
Publisher:Murphy
Chapter6: Business Expenses
Section: Chapter Questions
Problem 78IIP
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A county will invest $4,800,000 to clean up a chemical spill that occurred following a natural disaster. At the end of the 9-year planning horizon, an additional $1,200,000 will be spent in restoring the site to an environmentally acceptable condition. The investment is expected to produce net annual benefits that will decrease by 25% each year. The net annual public benefit in the 1st year is estimated to be $3,000,000. Determine the B/C ratio for the investment using a 6% MARR. Click here to access the TVM Factor Table calculator. B/C = Carry all interim calculations to 5 decimal places and then round your final answer to 3 decimal places. The tolerance is ±0.003.
Transcribed Image Text:A county will invest $4,800,000 to clean up a chemical spill that occurred following a natural disaster. At the end of the 9-year planning horizon, an additional $1,200,000 will be spent in restoring the site to an environmentally acceptable condition. The investment is expected to produce net annual benefits that will decrease by 25% each year. The net annual public benefit in the 1st year is estimated to be $3,000,000. Determine the B/C ratio for the investment using a 6% MARR. Click here to access the TVM Factor Table calculator. B/C = Carry all interim calculations to 5 decimal places and then round your final answer to 3 decimal places. The tolerance is ±0.003.
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