The modified B/C ratio is The project is economically [Click to select)

Managerial Economics: Applications, Strategies and Tactics (MindTap Course List)
14th Edition
ISBN:9781305506381
Author:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris
Publisher:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris
Chapter17: Long-term Investment Analysis
Section: Chapter Questions
Problem 10E
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The cash flows associated with a public works project in Buffalo, New York, are shown. Use the modified B/C ratio at a discount rate of
5% per year to determine the economic justification.
First cost, $
AW of benefits, S/year
AW of disbenefits, $/year
M&O costs. Siyear
Life of project, years
70,000,000
7,400,000
1,700,000
1,025,000
30
The modified B/C ratio is [
The project is economically [Click to select)
Transcribed Image Text:The cash flows associated with a public works project in Buffalo, New York, are shown. Use the modified B/C ratio at a discount rate of 5% per year to determine the economic justification. First cost, $ AW of benefits, S/year AW of disbenefits, $/year M&O costs. Siyear Life of project, years 70,000,000 7,400,000 1,700,000 1,025,000 30 The modified B/C ratio is [ The project is economically [Click to select)
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