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Calculate the conventional B/C ratio for the following cash flow estimates at a discount rate...

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Question

Accounting

Calculate the conventional B/C ratio for the following cash flow estimates at a discount rate of 4% per year.

Item

Cash Flow

PW of benefits, $

3,800,000

AW of disbenefits, $/year

50,000

First cost, $

2,200,000

M&O costs, $/year

350,000

Life of project, years

15

**The answers presented below were calculated using the appropriate factors from interest tables including all their decimal places**

Question 24 options:

B/C= 0.66

B/C= 0.53

B/C= 1.47

B/C= 1.27

Answer & Explanation Solved by verified expert
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