Question: A food processing plant has an estimated initial cost P15.5M with a net annual profit of P3M for the first four years of operations. In

A food processing plant has an estimated initial cost P15.5M with a net annual profit of P3M for the first four years of operations. In year 5 the plant is expected to expand to expand to meet growing demand. Cost of expansion is P6M with net annual profit increasing by P1.5M. Determine the B/C ratio for a 12-year operating period using a 12.5% MARR.

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