Required informationThe following data is provided for a PPP project.To the Government$1.8 million now and $200,000 every3 yearsTo the PeopleBenefits$85,000 per year beginning nowCostDisbenefits$5,000 per yearSavings$130,000 per yearCalculate the conventional benefticost ratios using an interest rate of 5% per year and an Infinite project perlod.The conventional B/C ratio is 0.4504The following dats is provided for a PPP project.To the Government$1.8 million now and $200,000 every3 years$130,000 per yearTo the PeopleBenefits$85,000 per year beginning nowCostDisbenefits$55,000 per yearSavingsCalculate the modified benefit/cost ratios using an interest rate of 5% per year and an infinite project period.The modified B/C ratio is 04504

Modified B/C ratio= PW(Annual Benefits)-PW( Annual Disbenefits)-PW of (Cost recurring in 3…

Required information The following data is provided for a PPP project. To the People To the Government $1.8 million now and $200,000 every 3 years $130,000 per yenr Benefits $85,000 per year beginning now Cost Disbenefits $55,000 per year Savings Calculate the conventional benefticost ratios using an interest rate of 5% per year and an infinite project period. The conventional B/C ratio is 04504 The following dats is provided for a PPP project. To the Government $1.8 million now and $200,000 every 3 years $130,000 per year To the People Benefits $85,000 per year beginning now Cost Disbenefits $55,000 per year Savings 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 0.4504

Required information The following data is provided for a PPP project. To the People To the Government $1.8 million now and $200,000 every 3 years $130,000 per yenr Benefits $85,000 per year beginning now Cost Disbenefits $55,000 per year Savings Calculate the conventional benefticost ratios using an interest rate of 5% per year and an infinite project period. The conventional B/C ratio is 04504 The following dats is provided for a PPP project. To the Government $1.8 million now and $200,000 every 3 years $130,000 per year To the People Benefits $85,000 per year beginning now Cost Disbenefits $55,000 per year Savings 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 0.4504

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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