The estimated annual cash flows for a proposed municipal government project are costs of $710,000 per year, benefits of $890,000 per year, and disbenefits of $210,000 per year. Calculate the conventional B/C ratio at an interest rate of 9% per year, and determine if it is economically justified. The B/C ratio is 1.39 The project is economically not justified

The estimated annual cash flows for a proposed municipal government project are costs of $710,000 per year, benefits of $890,000 per year, and disbenefits of $210,000 per year. Calculate the conventional B/C ratio at an interest rate of 9% per year, and determine if it is economically justified. The B/C ratio is 1.39 The project is economically not justified

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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