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A city government is considering increasing the capacity of the current wastewater treatment plant. The estimated financial data for the project as follows: Description Data

A city government is considering increasing the capacity of the current wastewater treatment plant. The estimated financial data for the project as follows:

Description Data
Capital Investment $1,200,000
Project Life 25 years
Incremental annual benefits $250,000
Incremental annual costs $100,000
Salvage value $50,000
Discount rate 6%

What would be the benefit-cost ratio for this expansion project ? Using Excel

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