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An Army Corps of Engineers project for improving navigation on the Ohio River will have an initial cost of $6,100,000 and annual maintenance of $155,000.

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An Army Corps of Engineers project for improving navigation on the Ohio River will have an initial cost of $6,100,000 and annual maintenance of $155,000. Benefits for barges and paddle wheel touring boats are estimated at $750,000 per year. The project is assumed to be permanent, and the discount rate is 12% per year. Determine if the Corps should proceed with the project. The B/C ratio is The project is economically

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