A public sector project will have the following cash flows. Annual benefits = $900,000 $50,000 Initial Cost = $10M Yearly maintained cost $80,000. If MARR is 7%, what is the modified B/C ratio for this project? 01.058 1.063 1.053 01.056 = Expected annual dis-benefits (quantifiable) - Life = 50 years.

Managerial Economics: Applications, Strategies and Tactics (MindTap Course List)
14th Edition
ISBN:9781305506381
Author:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris
Publisher:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris
Chapter17: Long-term Investment Analysis
Section: Chapter Questions
Problem 10E
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A public sector project will have the following cash flows.
Annual benefits = $900,000
$50,000
Initial Cost = $10M
Yearly maintained cost $80,000.
a
If MARR is 7%, what is the modified B/C ratio for this project?
01.058
1.063
1.053
01.056
Expected annual dis-benefits (quantifiable) -
=
Life - 50 years.
Transcribed Image Text:A public sector project will have the following cash flows. Annual benefits = $900,000 $50,000 Initial Cost = $10M Yearly maintained cost $80,000. a If MARR is 7%, what is the modified B/C ratio for this project? 01.058 1.063 1.053 01.056 Expected annual dis-benefits (quantifiable) - = Life - 50 years.
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