Question: A privately funded wind-based electric power generation company in the southern part of the country has developed the following estimates (in $1000) for a new

A privately funded wind-based electric power generation company in the southern part of the country has developed the following estimates (in $1000) for a new turbine farm. The MARR is 10% per year, and the project life is 25 years. Calculate

(a) The profitability index and

(b) The modified B/C ratio.

Benefits: ..........$20,000 in year 0 and $30,000 in year 5

Savings: .........$2000 in years 1–20

Cost: ..........$50,000 in year 0

Disbenefits: ........$3000 in years 1–10

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