n officer has propose a marine reclamation project to prevent coastal erosion. In his analysis, the initial cost of the project is RM 30 million with estimated maintenance of RM 340,000 per year. If this project implemented, there will be increased activities of tourism and fisheries that can provide returns to the government and the population of RM 6.2 million per year. Determine the B/C ratio if MARR is 8% per annum? Assume the life of the investment is 20 years.

Principles of Accounting Volume 2
19th Edition
ISBN:9781947172609
Author:OpenStax
Publisher:OpenStax
Chapter11: Capital Budgeting Decisions
Section: Chapter Questions
Problem 10PB: Bouvier Restaurant is considering an investment in a grill that costs $140,000, and will produce...
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An officer has propose a marine reclamation project to prevent coastal erosion.
In his analysis, the initial cost of the project
is RM 30 million with estimated maintenance
of RM 340,000 per year. If this project
implemented, there will be increased activities of tourism and fisheries that can provide returns to the government and the population of RM 6.2 million per year. Determine the B/C ratio if MARR is 8% per annum? Assume the life of the investment is 20 years.

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