A county will invest $5,600,000 to clean up a chemical spill that occurred following horizon, an additional $1,100,000 will be spent in restoring the site to an environm expected to produce net annual benefits that will decrease by 24% each year. The r to be $2,600,000. Determine the B/C ratio for the investment using a 7% MARR. Click here to access the TVM Factor Table calculator. B/C

Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
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A county will invest $5,600,000 to clean up a chemical spill that occurred following a natural disaster. At the end of the 9-year planning
horizon, an additional $1,100,000 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 24% each year. The net annual public benefit in the 1st year is estimated
to be $2,600,000. Determine the B/C ratio for the investment using a 7% MARR.
Click here to access the TVM Factor Table calculator.
B/C=
Transcribed Image Text:A county will invest $5,600,000 to clean up a chemical spill that occurred following a natural disaster. At the end of the 9-year planning horizon, an additional $1,100,000 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 24% each year. The net annual public benefit in the 1st year is estimated to be $2,600,000. Determine the B/C ratio for the investment using a 7% MARR. Click here to access the TVM Factor Table calculator. B/C=
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