The following data is provided for a PPP project. To the People To the Government $1.8 million now and $200.000 every 3 years $12d000 per year Benefits $95,000 per year beginning now Cost Disbenefits $35.000 per year Savings Calculate the modified benefiticost ratios using an interest rate of 10% per year and an infinite project period. The modified B/C ratio is 0.7882

Managerial Economics: Applications, Strategies and Tactics (MindTap Course List)
14th Edition
ISBN:9781305506381
Author:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris
Publisher:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris
Chapter17: Long-term Investment Analysis
Section: Chapter Questions
Problem 10E
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The following data is provided for a PPP project
To the People
To the Government
$1.8 million ndw and $200,000 every
З уears
$12d000 per year
Benefits
$95,000 per year beginning now
Cost
Disbenefits
$35.000 per year
Savings
Calculate the modified benefit/cost ratios using an interest rate of 10% per year and an infinite project period.
The modified B/C ratio is
07682
Transcribed Image Text:The following data is provided for a PPP project To the People To the Government $1.8 million ndw and $200,000 every З уears $12d000 per year Benefits $95,000 per year beginning now Cost Disbenefits $35.000 per year Savings Calculate the modified benefit/cost ratios using an interest rate of 10% per year and an infinite project period. The modified B/C ratio is 07682
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