A flood control project with a life of 14 years will require an investment of $57.000 and annual maintenance costs of S4,000. The project will provide no benefits for the first three years but will save $22,000 per year in flood damage starting in the fourth year. The appropriate MARR is 11% per year. What is the mo B-C ratio for the flood control project? A Click the icon to view the interest and annuity table for discrete compounding when the MARR is 11% per year. Choose the closest answer below. O More Info O A. The modified B-C ratio for the flood control project is 3.43. OB. The modified B-C ratio for the flood control project is 1.26. Discrete Compounding: i-11% OC. The modified B-C ratio for the flood control project is 1.18. OD. The modified B-C ratio for the flood control project is 1.75. OE. The modified B-C ratio for the flood control project is 1.64. Single Payment Compound Amount Factor To Find F Given P Uniform Series Present Worth Factor To Find P Compound Amount Sinking Fund Capital Recovery Factor Present Factor Worth Factor Factor To Find F Given 4 To Find P Given 4 To Find A Given To Find A Given E Given P

Intermediate Financial Management (MindTap Course List)
13th Edition
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Author:Eugene F. Brigham, Phillip R. Daves
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Chapter12: Capital Budgeting: Decision Criteria
Section: Chapter Questions
Problem 11MC: In an unrelated analysis, you have the opportunity to choose between the following two mutually...
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A flood control project with a life of 14 years will require an investment of $57,000 and annual maintenance costs of $4,000. The project will provide no benefits for the first three years but will save $22,000 per year in flood damage starting in the fourth year. The appropriate MARR is 11% per year. What is the modifie
B-C ratio for the flood control project?
Click the icon to view the interest and annuity table for discrete compounding when the MARR is 11% per year.
Choose the closest answer below.
i More Info
O A. The modified B-C ratio for the flood control project is 3.43.
O B. The modified B-C ratio for the flood control project is 1.26.
O C. The modified B-C ratio for the flood control project is 1.18.
Discrete Compounding; i= 11%
Uniform Series
Single Payment
Compound
Amount
O D. The modified B-C ratio for the flood control project is 1.75.
Compound
Amount
Sinking
Fund
Factor
To Find A
Сaptal
Recovery
Factor
O E. The modified B-C ratio for the flood control project is 1.64.
Present
Worth Factor
Present
Factor
Factor
Worth Factor
To Find P
To Find F
Given A
FIA
To Find F
To Find P
To Find A
Given A
Given F
AIF
Given P
Given F
Given P
FIP
PIF
PIA
AIP
1
1.1100
0.9009
1.0000
0.9009
1.0000
1.1100
2
1.2321
0.8116
2.1100
1.7125
0.4739
0.5839
3
1.3676
0.7312
3.3421
2.4437
0.2992
0.4092
4.7097
6.2278
4
1.5181
0.6587
3.1024
0.2123
0.3223
1.6851
0.5935
3.6959
0.1606
0.2706
6
1.8704
0.5346
7.9129
4.2305
0.1264
0.2364
0.4817
0.4339
7
2.0762
9.7833
4.7122
0.1022
0.2122
8
2.3045
11.8594
5.1461
0.0843
0.1943
9
2.5580
0.3909
14.1640
5.5370
0.0706
0.1806
10
2.8394
0.3522
16.7220
5.8892
0.0598
0.1698
3.1518
3.4985
0.0511
0.0440
0.0382
0.0332
11
0.3173
19.5614
6.2065
0.1611
12
0.2858
22.7132
6.4924
0.1540
13
3.8833
0.2575
26.2116
6.7499
0.1482
14
4.3104
0.2320
30.0949
6.9819
0.1432
15
4.7846
0.2090
34.4054
7.1909
0.0291
0.1391
16
5.3109
0.1883
39.1899
7.3792
0.0255
0.1355
0.0225
0.0198
0.0176
0.1325
0.1298
17
5.8951
6.5436
0.1696
44.5008
7.5488
18
0.1528
50.3959
7.7016
56.9395
64.2028
19
7.2633
0.1377
7.8393
0.1276
20
8.0623
0.1240
7.9633
0.0156
0.1256
Transcribed Image Text:A flood control project with a life of 14 years will require an investment of $57,000 and annual maintenance costs of $4,000. The project will provide no benefits for the first three years but will save $22,000 per year in flood damage starting in the fourth year. The appropriate MARR is 11% per year. What is the modifie B-C ratio for the flood control project? Click the icon to view the interest and annuity table for discrete compounding when the MARR is 11% per year. Choose the closest answer below. i More Info O A. The modified B-C ratio for the flood control project is 3.43. O B. The modified B-C ratio for the flood control project is 1.26. O C. The modified B-C ratio for the flood control project is 1.18. Discrete Compounding; i= 11% Uniform Series Single Payment Compound Amount O D. The modified B-C ratio for the flood control project is 1.75. Compound Amount Sinking Fund Factor To Find A Сaptal Recovery Factor O E. The modified B-C ratio for the flood control project is 1.64. Present Worth Factor Present Factor Factor Worth Factor To Find P To Find F Given A FIA To Find F To Find P To Find A Given A Given F AIF Given P Given F Given P FIP PIF PIA AIP 1 1.1100 0.9009 1.0000 0.9009 1.0000 1.1100 2 1.2321 0.8116 2.1100 1.7125 0.4739 0.5839 3 1.3676 0.7312 3.3421 2.4437 0.2992 0.4092 4.7097 6.2278 4 1.5181 0.6587 3.1024 0.2123 0.3223 1.6851 0.5935 3.6959 0.1606 0.2706 6 1.8704 0.5346 7.9129 4.2305 0.1264 0.2364 0.4817 0.4339 7 2.0762 9.7833 4.7122 0.1022 0.2122 8 2.3045 11.8594 5.1461 0.0843 0.1943 9 2.5580 0.3909 14.1640 5.5370 0.0706 0.1806 10 2.8394 0.3522 16.7220 5.8892 0.0598 0.1698 3.1518 3.4985 0.0511 0.0440 0.0382 0.0332 11 0.3173 19.5614 6.2065 0.1611 12 0.2858 22.7132 6.4924 0.1540 13 3.8833 0.2575 26.2116 6.7499 0.1482 14 4.3104 0.2320 30.0949 6.9819 0.1432 15 4.7846 0.2090 34.4054 7.1909 0.0291 0.1391 16 5.3109 0.1883 39.1899 7.3792 0.0255 0.1355 0.0225 0.0198 0.0176 0.1325 0.1298 17 5.8951 6.5436 0.1696 44.5008 7.5488 18 0.1528 50.3959 7.7016 56.9395 64.2028 19 7.2633 0.1377 7.8393 0.1276 20 8.0623 0.1240 7.9633 0.0156 0.1256
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