Question: Data is provided for a public works project. What is the B/C ratio for the projected cash flow? Project B Initial cost $525,000 Life of

Data is provided for a public works project. What is the B/C ratio for the projected cash flow?

Project B
Initial cost $525,000
Life of project 5 years
Salvage 12% of initial cost
1st year costs $145,000
Annual cost increase 12% per year
1st year benefits $476,000
Benefits increase 18% per year
MARR 16.00%

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