QUESTION 4 Calculate the modified B/C ratio for the following cash flow estimates of a public project at an interest rate of 2% per year. Initial Cost Annual Benefits Annual Disbenefits Annual O&M costs Projected life 600,000 125,000 35,470 25,000 20

Financial And Managerial Accounting
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Author:WARREN, Carl S.
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Chapter26: Capital Investment Analysis
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QUESTION 4
Calculate the modified B/C ratio for the following cash flow estimates of a public project at an interest rate of 2% per year.
Initial Cost
Annual Benefits
Annual Disbenefits
Annual O&M costs
Projected life
600,000
125,000
35,470
25,000
20
Transcribed Image Text:QUESTION 4 Calculate the modified B/C ratio for the following cash flow estimates of a public project at an interest rate of 2% per year. Initial Cost Annual Benefits Annual Disbenefits Annual O&M costs Projected life 600,000 125,000 35,470 25,000 20
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