The following data is provided for a PPP project. To the People To the Government Benefits $95,000 per year beginning now Cost $1.8 million now and $200,000 every 3 years Disbenefits $60,000 per year Savings $115,000 per year Calculate the conventional benefit/cost ratios using an interest rate of 12% per year and an infinite project period. The conventional B/C ratio is .
The following data is provided for a PPP project. To the People To the Government Benefits $95,000 per year beginning now Cost $1.8 million now and $200,000 every 3 years Disbenefits $60,000 per year Savings $115,000 per year Calculate the conventional benefit/cost ratios using an interest rate of 12% per year and an infinite project period. The conventional B/C ratio is .
Intermediate Financial Management (MindTap Course List)
13th Edition
ISBN:9781337395083
Author:Eugene F. Brigham, Phillip R. Daves
Publisher:Eugene F. Brigham, Phillip R. Daves
Chapter12: Capital Budgeting: Decision Criteria
Section: Chapter Questions
Problem 10P: Project S has a cost of $10,000 and is expected to produce benefits (cash flows) of $3,000 per year...
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- The following data is provided for a PPP project.
|
To the People |
|
To the Government |
Benefits |
$95,000 per year beginning now |
Cost |
$1.8 million now and $200,000 every 3 years |
Disbenefits |
$60,000 per year |
Savings |
$115,000 per year |
Calculate the conventional benefit/cost ratios using an interest rate of 12% per year and an infinite project period.
The conventional B/C ratio is .
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