The following data is provided for a PPP project. Benefits Disbenefits To the People $150,000 per year beginning now $30,000 per year S7.4.b - Benefit/Cost Analysis of a Single Project The modified B/C ratio is Cost Savings Calculate the modified benefit/cost ratios using an interest rate of 7% per year and an infinite project period. To the Government $1.8 million now and $200,000 every 3 years $80,000 per year
The following data is provided for a PPP project. Benefits Disbenefits To the People $150,000 per year beginning now $30,000 per year S7.4.b - Benefit/Cost Analysis of a Single Project The modified B/C ratio is Cost Savings Calculate the modified benefit/cost ratios using an interest rate of 7% per year and an infinite project period. To the Government $1.8 million now and $200,000 every 3 years $80,000 per year
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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Transcribed Image Text:The following data is provided for a PPP project.
Benefits
Disbenefits
To the People
$150,000 per year beginning now
$30,000 per year
S7.4.b - Benefit/Cost Analysis of a Single Project
The modified B/C ratio is
Cost
Savings
Calculate the modified benefit/cost ratios using an interest rate of 7% per year and an infinite project period.
To the Government
$1.8 million now and $200,000 every
3 years
$80,000 per year
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