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A private wind power generation company in the south of the country made the following estimates (in thousands of pesos) for a new wind farm.

A private wind power generation company in the south of the country made the following estimates (in thousands of pesos) for a new wind farm. The discount rate is 10% per year and the life of the project is 25 years. Calculate a) the rate of return and b) the modified B/C ratio
Benefits: $20,000 in year 0 and $30,000 in year 5
Savings: $2,000 in years 1-20
Cost: $50,000 in year 0
Disadvantages: $3,000 in years 1-10

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