6. Consider the cash flow amounts, shown below, for acertain public project. Find the conventional Benefit/Cost ratio,assuming an annual interest rate of 8%%. PW, $ AW, S/Year FW, S First cost 100,000 259,370 O&M cost 61,446 10,000 159,374 Benefits Disbenefits 30,723 40,000 5,000 637,496

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
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6. Consider the cash flow amounts, shown below, for acertain public project. Find the conventional
Benefit/Cost ratio,assuming an annual interest rate of 8%%.
PW, $ AW, S/Year FW, S
First cost
100,000
259,370
O&M cost
61,446
10,000 159,374
Benefits
Disbenefits 30,723
40,000
5,000
637,496
Transcribed Image Text:6. Consider the cash flow amounts, shown below, for acertain public project. Find the conventional Benefit/Cost ratio,assuming an annual interest rate of 8%%. PW, $ AW, S/Year FW, S First cost 100,000 259,370 O&M cost 61,446 10,000 159,374 Benefits Disbenefits 30,723 40,000 5,000 637,496
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