The following data is provided for a PPP project. To the People To the GovernmentBenefits$95,000 per year beginning nowCost$1.8 million now and $200,000 every 3 yearsDisbenefits$60,000 per yearSavings$115,000 per yearCalculate the conventional benefit/cost ratios using an interest rate of 12% per year and an infinite project period. The conventional B/C ratio is .

Benefit Cost Ratio A benefit-cost ratio (BCR) is a ratio used in a cost-benefit analysis to…

Answered: The following data is provided for a…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

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The following data is provided for a PPP project.

	To the People		To the Government
Benefits	$95,000 per year beginning now	Cost	$1.8 million now and $200,000 every 3 years
Disbenefits	$60,000 per year	Savings	$115,000 per year

Calculate the conventional benefit/cost ratios using an interest rate of 12% per year and an infinite project period.

The conventional B/C ratio is .

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