A county will invest $4,100,000 to clean up a chemical spill that occurred following a natural disaster. At the end of the 10-year planning horizon, an additional $900,000 will be spent in restoring the site to an environmentally acceptable condition. The investment is expected to produce net annual benefits that will decrease by 29% each year. The net annual public benefit in the 1st year is estimated to be $2,500,000. Determine the B/C ratio for the investment using a 5% MARR. Click here to access the TVM Factor Table calculator. B/C= Carry all interim calculations to 5 decimal places and then round your final answer to 3 decimal places. The tolerance is ±0.003.

A county will invest $4,100,000 to clean up a chemical spill that occurred following a natural disaster. At the end of the 10-year planning horizon, an additional $900,000 will be spent in restoring the site to an environmentally acceptable condition. The investment is expected to produce net annual benefits that will decrease by 29% each year. The net annual public benefit in the 1st year is estimated to be $2,500,000. Determine the B/C ratio for the investment using a 5% MARR. Click here to access the TVM Factor Table calculator. B/C= Carry all interim calculations to 5 decimal places and then round your final answer to 3 decimal places. The tolerance is ±0.003.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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