Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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Transcribed Image Text:An Army Corps of Engineers project for improving navigation on the Ohio River will have an initial cost of $6,450,000 and annual
maintenance of $135,000. Benefits for barges and paddle wheel touring boats are estimated at $775,000 per year. The project is
assumed to be permanent, and the discount rate is 10% per year. Determine if the Corps should proceed with the project.
The B/C ratio is
The project is economically not justified
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