Calculate the benefit-to-cost ratio of a project that involves the following cash flow: Initial Cost $500 Uniform $155 (for a total of 15 years) Annual Benefit Assume a 9% interest rate. Group of answer choices 2.9 2.4 0.68 1.2

Calculate the benefit-to-cost ratio of a project that involves the following cash flow: Initial Cost $500 Uniform $155 (for a total of 15 years) Annual Benefit Assume a 9% interest rate. Group of answer choices 2.9 2.4 0.68 1.2

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

Calculate the benefit-to-cost ratio of a project that involves the following cash flow:

Initial Cost $500

Uniform $155 (for a total of 15 years)

Annual

Benefit

Assume a 9% interest rate.

Group of answer choices

2.9

2.4

0.68

1.2

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