Homework Answers
B/C ratio = Benefits/Cost
Benefits = (910000-230000)/9%
= 7555555.55
Cost = 800000/9% = 8888888.88
B/C ratio = 7555555.55/8888888.88 = 0.85
The project is economically not justified
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Problem 09.010 Benefit/Cost Analysis of a Single Project The estimated annual cash flows for a proposed...
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