Q7.2. From the following data, use the conventional B/C ratio for a project which has a 20-year life to determine if it is economically justified. Use an interest rate of 8% per year. Consequences To the People To the Government Annual benefits = $90,000 per year First cost = $750,000 Annual disbenefits $10,000 per year Annual cost = $50,000 per year %3D Annual savings = $30,000 per year

Q7.2. From the following data, use the conventional B/C ratio for a project which has a 20-year life to determine if it is economically justified. Use an interest rate of 8% per year. Consequences To the People To the Government Annual benefits = $90,000 per year First cost = $750,000 Annual disbenefits $10,000 per year Annual cost = $50,000 per year %3D 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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