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An outer beltway is being planned for Nashville, Tennessee. The cost of this project is estimated to be $250 million. Benefits are expected to be
An outer beltway is being planned for Nashville, Tennessee. The cost of this project is estimated to be $250 million. Benefits are expected to be $25 million per year. Annual maintenance costs are estimated to be $1 million. The beltway will have to be resurfaced every 10 years at an estimated cost of $10 million. The city has raised enough money for this project by selling bonds with a 6% coupon rate. If the life of the beltway is expected to be 50 years, what is the modified B/C ratio for this project?
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