Question
A government-funded wind-based electric power generation company in the southern part of the country has developed the following estimates (in $1000) for a new turbine
A government-funded wind-based electric power generation company in the southern part of the country has developed the following estimates (in $1000) for a new turbine farm. The MARR is 10% per year and the project life is 25 years.
Benefits: $45,000 in year 0; $32,000 in year 5
Government savings: $2,000 in years 1 through 20
Cost: $68,000 in year 0
Disbenefits: $3000 in years 1 through 10
Calculate the modified B/C ratio.
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Survey of Accounting
Authors: Thomas P. Edmonds, Frances M. McNair, Philip R. Olds, Bor Yi
3rd Edition
978-1259683794, 77490835, 1259683796, 9780077490836, 978-0078110856
