A wastewater treatment plant is expected to require an initial investment of $500,000 and annual maintenance expenses

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A wastewater treatment plant is expected to require an initial investment of $500,000 and annual maintenance expenses of $80,000. The benefits to the public are valued at $100,000 per year. This project can be assumed to have an infinite life. If MARR is 10% per year, determine whether the project is economically attractive the B-C ratio measure of merit.
MARR
Minimum Acceptable Rate of Return (MARR), or hurdle rate is the minimum rate of return on a project a manager or company is willing to accept before starting a project, given its risk and the opportunity cost of forgoing other...
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Engineering Economy

ISBN: 978-0132554909

15th edition

Authors: William G. Sullivan, Elin M. Wicks, C. Patrick Koelling

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