With interest at 10%, what is the benefit-cost ratio for this government project? Initial Cost $201,767 Additional costs at the end of year 1 and year 2 $28,755/year $0/year Benefits at end of year 1 and year 2 Annual benefits at end of year 3 through year 10 Enter your answer as follow: 12.34 $108,308/year

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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With interest at 10%, what is the benefit-cost ratio for this government project?
Initial Cost
$201,767
Additional costs at the end of year 1 and
year 2
Benefits at end of year 1 and year 2
Annual benefits at end of year 3 through
year 10
Enter your answer as follow: 12.34
$28,755/year
$0/year
$108,308/year
Transcribed Image Text:With interest at 10%, what is the benefit-cost ratio for this government project? Initial Cost $201,767 Additional costs at the end of year 1 and year 2 Benefits at end of year 1 and year 2 Annual benefits at end of year 3 through year 10 Enter your answer as follow: 12.34 $28,755/year $0/year $108,308/year
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