Calculate the B/C ratio for the following cash flow estimates at a discount rate of 7% per

Question:

Calculate the B/C ratio for the following cash flow estimates at a of 7% per year.
Item Cash Flow
FW of benefits ........... $ 30,800,000
AW of disbenefits, $ per year ..... 105,000
First cost, $ ............. 1,200,000
M&O costs, $ per year ....... 400,000
Life of project, years ........ 20

Discount Rate
Depending upon the context, the discount rate has two different definitions and usages. First, the discount rate refers to the interest rate charged to the commercial banks and other financial institutions for the loans they take from the Federal...