A tax exempt municipality is considering the construction of a new municipal waste water treatment acility. Two different sites have been selected as technically, politically, socially, and financially feasibl The city council uses 6% interest rate for all analyses for public projects. The expected cash flow for t wo alternatives are as follow: Year Alt. A 10 Alt. B - $14082160 - $26368476 $1826323/year $3081175/year 1- 75 What is the incremental benefit/cost ratio? 10.04
A tax exempt municipality is considering the construction of a new municipal waste water treatment acility. Two different sites have been selected as technically, politically, socially, and financially feasibl The city council uses 6% interest rate for all analyses for public projects. The expected cash flow for t wo alternatives are as follow: Year Alt. A 10 Alt. B - $14082160 - $26368476 $1826323/year $3081175/year 1- 75 What is the incremental benefit/cost ratio? 10.04
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
Section: Chapter Questions
Problem 1PS
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Transcribed Image Text:A tax exempt municipality is considering the construction of a new municipal waste water treatment
facility. Two different sites have been selected as technically, politically, socially, and financially feasible.
The city council uses 6% interest rate for all analyses for public projects. The expected cash flow for the
two alternatives are as follow:
Year Alt. A
Alt. B
- $14082160
- $26368476
$1826323/year $3081175/year
0
1-
75
What is the incremental benefit/cost ratio?
Enter your answer as follow: 12.34
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