What is the modified B-C ratio for the flood control project?
(a) 1.53
(b) 1.33
(c) 1.76
(d) 2.20
(e) 4.80
A flood control project with a life of 16 years will require an investment of $60,000 and annual maintenance costs of $5,000. The project will provide no benefits for the first two years but will save $24,000 per year in flood damage starting in the third year. The appropriate MARR is 12% per year. Use this information to answer problems 10-29 and 10-30. Select the closest answer.