1. A county will invest $4,500,000 to clean up a chemical spill that occurred following a natural disaster. At the end of the 13-year planning horizon, an additional $800,000 will be spent in restoring the site to an environmentally acceptable condition. The investment is expected to produce net annual benefits that will decrease by 26% each year. The net annual public benefit in the 1st year is estimated to be $2,200,000. Determine the B/C ratio for the investment using a 4% MARR.

BC= ?

2. An investment of $2,005,000 today yields positive cash flows of $400,000 each year for years 1 through 10. MARR is 15%. Determine the DPBP of this investment.