Calculate the benefit-to-cost ratio of a project that involves the followingcash flow:Initial Cost$300Uniform$110 (first five years)Annual$120 (year six to year ten)Benefit$135 (year 11 to year 15)Assume a 9% interest rate.O 1.2O 2.7O 1.36O 0.95O 3.5О 32

Present value of benefit PV = [Benefit / (1 + interest rate) number of years] Interest rate is 9%,…

Answered: Calculate the benefit-to-cost ratio of…

Calculate the benefit-to-cost ratio of a project that involves the followi cash flow: Initial Cost $300 Uniform $110 (first five years)

ENGR.ECONOMIC ANALYSIS

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ISBN:9780190931919

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Chapter1: Making Economics Decisions

Section: Chapter Questions

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Question

Calculate the benefit-to-cost ratio of a project that involves the following
cash flow:
Initial Cost
$300
Uniform
$110 (first five years)
Annual
$120 (year six to year ten)
Benefit
$135 (year 11 to year 15)
Assume a 9% interest rate.
O 1.2
O 2.7
O 1.36
O 0.95
O 3.5
О 32

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