Calculate the conventional 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, $ AW of Disbenefits, $/year PW Cost, $ Life, Years Estimate 4,150,000 45,000 1,325,000 20

Calculate the conventional 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, $ AW of Disbenefits, $/year PW Cost, $ Life, Years Estimate 4,150,000 45,000 1,325,000 20

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 conventional B/C ratio for the following cash flow estimates at a discount rate of
10% per year. Is the project justified?
Item
Estimate
PW of Benefits, $
AW of Disbenefits, $/year
PW Cost, $
Life, Years
4,150,000
45,000
1,325,000
20

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