he 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, $30,000,000AW of benefits, $/year7,700,000AW of disbenefits, $/year1,700,000M&O costs, $/year 1,525,000Life of project, years30 The modified B/C ratio is .The project is economically (Click to select) justified not justified .

Benefit cost analysis is calculated by dividing the discounted benefits by the discounted costs.…

Answered: he cash flows associated with a public…

Financial And Managerial Accounting

15th Edition

ISBN:9781337902663

Author:WARREN, Carl S.

Publisher:WARREN, Carl S.

Chapter26: Capital Investment Analysis

Section: Chapter Questions

Problem 2CMA: Staten Corporation is considering two mutually exclusive projects. Both require an initial outlay of...

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he 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, $	30,000,000
AW of benefits, $/year	7,700,000
AW of disbenefits, $/year	1,700,000
M&O costs, $/year	1,525,000
Life of project, years	30

The modified B/C ratio is .

The project is economically (Click to select) justified not justified .

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