The cash flows associated with a public-school building repair project are as follows: costs $550,000 per year; benefits $600,000 per year; disbenefits $90,000 per year. Determine the conventional B/C ratio and say whether the project is viable. a. B/C ratio 0.83 and the project is viable b. B/C ratio = 0.83 and the project is not viable c. B/C ratio 0.93 and the project is viable d. B/C ratio = 0.93 and the project is not viable e. B/C ratio - 1.25 and the project is viable

The cash flows associated with a public-school building repair project are as follows: costs $550,000 per year; benefits $600,000 per year; disbenefits $90,000 per year. Determine the conventional B/C ratio and say whether the project is viable. a. B/C ratio 0.83 and the project is viable b. B/C ratio = 0.83 and the project is not viable c. B/C ratio 0.93 and the project is viable d. B/C ratio = 0.93 and the project is not viable e. B/C ratio - 1.25 and the project is viable

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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