Benefits Disbenefits $110,000 per year beginning now $65,000 per year The conventional B/C ratio is Cost Savings Calculate the conventional benefit/cost ratios using an interest rate of 7% per year and an infinite project period. $1.8 million now and $200,000 3 years $95000 per year

Benefits Disbenefits $110,000 per year beginning now $65,000 per year The conventional B/C ratio is Cost Savings Calculate the conventional benefit/cost ratios using an interest rate of 7% per year and an infinite project period. $1.8 million now and $200,000 3 years $95000 per year

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Question

The following data is provided for a PPP project.
Benefits
Disbenefits
To the People
$110,000 per year beginning now
$65,000 per year
The conventional B/C ratio is
Cost
Savings
Calculate the conventional benefit/cost ratios using an interest rate of 7% per year and an infinite project period.
To the Government
$1.8 million now and $200,000
3 years
$95,000 per year

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