ENGR.ECONOMIC ANALYSIS
14th Edition
ISBN: 9780190931919
Author: NEWNAN
Publisher: Oxford University Press
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Question
From the following data for a PPP project, calculate
the (a) conventional, and (b) modified benefit/
cost ratios using an interest rate of 6% per year and
an infinite project period.
To the People To the Government
Benefits: $100,000 per year
beginning now
Costs: $1.8 million now
and $200,000
every 3 years
Disbenefits: $60,000 per year Savings: $90,000 per year
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