5.7)

A tax exempt municipality is considering the construction of a new municipal waste water treatment facility. Two different sites have been selected as technically, politically, socially, and financially feasible. The city council uses 6% interest rate for all analyses for public projects. The expected cash flow for the two alternatives are as follow: Year Alt. A 0 $13064021 $27542429 1 75 Alt. B $1636940/year $3211877/year What is the incremental benefit/cost ratio? Enter your answer as follow: 12.34