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. To the People Annual benefits $105,000 per year Annual disbenefits = $10,000 per year The B/C ratio is___. The project is______ To the Government First cost = $550,000 Annual cost = $29,000 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. To the People Annual benefits $105,000 per year Annual disbenefits = $10,000 per year The B/C ratio is_. The project is____ To the Government First cost = $550,000 Annual cost = $29,000 per year Annual savings $30,000 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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