Find A. conventional B/C ratio B. modified B/C ratio C. Pl value A government-funded wind-based electric power generation company in the southern part of the country has developed the following estimates (in $1000) for a new turbine farm. The MARR is 10% per year and the project life is 25 years. Benefits: $45,000 in year 0; $31,500 in year 2 Government savings: $2,000 in years 1 through 20 Cost: $66,000 in year 0 Disbenefits: $3000 in years 1 through 10

Find A. conventional B/C ratio B. modified B/C ratio C. Pl value A government-funded wind-based electric power generation company in the southern part of the country has developed the following estimates (in $1000) for a new turbine farm. The MARR is 10% per year and the project life is 25 years. Benefits: $45,000 in year 0; $31,500 in year 2 Government savings: $2,000 in years 1 through 20 Cost: $66,000 in year 0 Disbenefits: $3000 in years 1 through 10

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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