A government-funded wind-based electric power generation company in the southern part of the country has...

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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; $31,000 in year 4

Government savings: $2,000 in years 1 through 20

Cost: $64,000 in year 0

Disbenefits: $3000 in years 1 through 10

(a) The conventional B/C ratio is

(b) the profitability index and

(c) the modified B/C ratio.

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