Required informationThe following data is provided for a PPP project.To the Government$1.8 million now and $200,000 every3 yearsTo the PeopleBenefits$95,000 per year beginning nowCost$35,000 per yearSavings$80000 per yearDisbenefitsCalculate the modified benefit/cost ratios using an interest rate of 5% per year and an infinite project period.The modified B/C ratio is

In financial economics, the ratio of modified B/C takes the maintenance and project operating costs…

Required information The following data is provided for a PPP project. To the People To the Government $1.8 million naw and $200,000 every 3 years Benefits $95,000 per year beginning now Cost Disbenefits $35,000 per year Savings $80000 per year Calculate the modified benefit/cost ratios using an interest rate of 5% per year and an infinite project period. The modified B/C ratio is

Required information The following data is provided for a PPP project. To the People To the Government $1.8 million naw and $200,000 every 3 years Benefits $95,000 per year beginning now Cost Disbenefits $35,000 per year Savings $80000 per year Calculate the modified benefit/cost ratios using an interest rate of 5% per year and an infinite project period. The modified B/C ratio is

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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N5 The following data is provided for a PPP project. To the People To the Government Benefits $130,000 per year beginning now Cost $1.8 million now and $200,000 every 3 years Disbenefits $45,000 per year Savings $90,000 per year Calculate the conventional benefit/cost ratios using an interest rate of 6% per year and an infinite project period.
In a modified B/C ratio:a. disbenefits and M&O costs are subtracted from benefitsb. disbenefits are subtracted from benefits, and M&O costs are added to costsc. disbenefits and M&O costs are added to costsd. disbenefits are added to costs, and M&O costs are subtracted from benefits
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Why are benefit cost ratios inappropriate for evaluating alternative projects?
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