4. Istanbul Municipality wants to know if a Flood Control Project is economically feasible. Annual Benefits...

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4. Istanbul Municipality wants to know if a Flood Control Project is economically feasible. Annual Benefits $1,200,000; Annual Disbenefits $ 200,000; Initial Cost of the Project= $3,000,000 Annual Operation Costs $400,000 and Project Life- 20 years. Calculate the B/C ratio if interest rate is i-10% per year; indicate if the project is to be undertaken. a) B/C-0.333; Don't undertake it b) B/C-0.417; Undertake it c) B/C-1.246; Undertake it d) B/C-0.246 Don't undertake it e) B/C= 1.818 Undertake it 4. Istanbul Municipality wants to know if a Flood Control Project is economically feasible. Annual Benefits $1,200,000; Annual Disbenefits $ 200,000; Initial Cost of the Project= $3,000,000 Annual Operation Costs $400,000 and Project Life- 20 years. Calculate the B/C ratio if interest rate is i-10% per year; indicate if the project is to be undertaken. a) B/C-0.333; Don't undertake it b) B/C-0.417; Undertake it c) B/C-1.246; Undertake it d) B/C-0.246 Don't undertake it e) B/C= 1.818 Undertake it

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