Consider the following investment opportunity: Initial cost $100,000 Additional cost at end of Year 1 150,000 Benefit
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Consider the following investment opportunity:
Initial cost $100,000
Additional cost at end of Year 1 150,000
Benefit at end of Year 1 0
Annual benefit per year at end 20,000
Of Years 2-10
With interest at 7%, what is the benefit-cost ratio for this project?
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