From the following data, use the conventional B/C ratio for a project that has a 20-year life to determine if it is economically justified. Use an interest rate of 8% per year. Consequences To the People Annual benefits = $115,000 per year Annual disbenefits = $10,000 per year The B/C ratio is The project is (Click to select) To the Government First cost = $700,000 Annual cost = $133,000 per year Annual savings = $30,000 per year

From the following data, use the conventional B/C ratio for a project that has a 20-year life to determine if it is economically justified. Use an interest rate of 8% per year. Consequences To the People Annual benefits = $115,000 per year Annual disbenefits = $10,000 per year The B/C ratio is The project is (Click to select) To the Government First cost = $700,000 Annual cost = $133,000 per year Annual savings = $30,000 per year

Managerial Economics: Applications, Strategies and Tactics (MindTap Course List)

14th Edition

ISBN:9781305506381

Author:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris

Publisher:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris

Chapter17: Long-term Investment Analysis

Section: Chapter Questions

Problem 10E

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