Calculate the B/C ratio for the following cash flow estimates at a discount rate of 10% per year. Is the project justified Item PW of Benefits, S AW of Disbenefits, $/year First Cost, $ M&O Costs, $/Year Life, Years The B/C ratio is The project is [(Click to select) Estimate 3,550,000 45,000 1,025,000 220,000 20
Calculate the B/C ratio for the following cash flow estimates at a discount rate of 10% per year. Is the project justified Item PW of Benefits, S AW of Disbenefits, $/year First Cost, $ M&O Costs, $/Year Life, Years The B/C ratio is The project is [(Click to select) Estimate 3,550,000 45,000 1,025,000 220,000 20
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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Calculate the B/C ratio for the following cash flow estimates at a discount rate of 10% per year. Is the project justified?
Estimate
3,550,000
45,000
1,025,000
220,000
20
Item
PW of Benefits, S
AW of Disbenefits, $/year
First Cost, $
M&O Costs, $/Year
Life, Years
The B/C ratio is
The project is (Click to select)
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