Consider the following investment opportunity: Initial cost ............................................................ $100,000 Additional cost at end of Year 1 ..................................

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Consider the following investment opportunity:
Initial cost ............................................................ $100,000
Additional cost at end of Year 1 .................................. $150,000
Benefit at end of Year 1 ............................................ 0
Annual benefit per year at end of Years 2-10............... $20,000
With interest at 7%, what is the benefit-cost ratio for this project?
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Engineering Economic Analysis

ISBN: 9780195168075

9th Edition

Authors: Donald Newnan, Ted Eschanbach, Jerome Lavelle

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