A project has the following cost and benefit data Initial Cost $15M Annual O M Cost $500K Annual Benefit $4M The life has the following Probability distribution Life Probability 7 0 20 8 0 50 9 0 30 MARR 8 Reference Case Study 16 Compute the conventional B C ratio using the expected EUAC Question 10 options a) 1 286 b) 1 183 c) 1 290 d) 1 379

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Question: A project has the following cost and benefit data. Initial Cost = $15M Annual O&M Cost = $500K Annual Benefit = $4M The life has

A project has the following cost and benefit data. Initial Cost = $15M Annual O&M Cost = $500K Annual Benefit = $4M The life has the following Probability distribution.

Life	Probability
7	0.20
8	0.50
9	0.30

MARR = 8%

Reference: Case Study 16

Compute the conventional B/C ratio using the expected EUAC.

Question 10 options:


a)	1.286

b)	1.183

c)	1.290

d)	1.379

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