Required information The following data is provided for a PPP project. To the Government $1.8 milion now and $200,000 every 3 years $115,000 per year To the People Benefits $90,000 per year beginning now Cost Disbenefits $25,000 per year Savings Calculate the conventional benefit/cost ratios using an interest rate of 7% per year and an infinite project period. The conventional B/C ratio is

Managerial Accounting
15th Edition
ISBN:9781337912020
Author:Carl Warren, Ph.d. Cma William B. Tayler
Publisher:Carl Warren, Ph.d. Cma William B. Tayler
Chapter12: Capital Investment Analysis
Section: Chapter Questions
Problem 4BE: Internal rate of return A project is estimated to cost 463,565 and provide annual net cash flows of...
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Required information
The following data is provided for a PPP project.
To the Government
$1.8 milion naw and $200,000 every
3 years
To the People
Benefits
$90,000 per year beginning now
Cost
$25,000 per year
Savings
$115,000 per year
Disbenefits
Calculate the conventional benefit/cost ratios using an interest rate of 7% per year and an infinite project period.
The conventional B/C ratio is
Transcribed Image Text:Required information The following data is provided for a PPP project. To the Government $1.8 milion naw and $200,000 every 3 years To the People Benefits $90,000 per year beginning now Cost $25,000 per year Savings $115,000 per year Disbenefits Calculate the conventional benefit/cost ratios using an interest rate of 7% per year and an infinite project period. The conventional B/C ratio is
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