The estimated annual cash flows for a proposed municipal government project are costs of $750,000 per year,

Question:

The estimated annual cash flows for a proposed municipal government project are costs of $750,000 per year, benefits of $900,000 per year, and disbenefits of $225,000 per year. Calculate the conventional B/C ratio at an interest rate of 6% per year and determine if it is economically justified.

Fantastic news! We've Found the answer you've been seeking!

Step by Step Answer:

Related Book For  book-img-for-question

Engineering Economy

ISBN: 978-0073523439

8th edition

Authors: Leland T. Blank, Anthony Tarquin

Question Posted: