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Gusto 13 Not yet answered Points out of 3.75 P Flag Question (NOTE: ENTER YOUR ANSWER ROUNDED TO TWO DECIMAL PLACES, for instance as 2.56,
Gusto 13 Not yet answered Points out of 3.75 P Flag Question (NOTE: ENTER YOUR ANSWER ROUNDED TO TWO DECIMAL PLACES, for instance as 2.56, not as 2.564321. Include negative sign in front of your answer if negative. Do not round intermediate calculations!) A public reforestation project is being considered. The project would involve a purchase of a large land area, and subsequent planting and maintenance of trees. The project is assumed to last 27 years, with the land kept as government property afterwards, and no cash flows resulting from the project's liquidation. The initial cost of purchasing land is estimated at $14 million with ongoing annual cost of planting trees and maintenance crew salaries of $886000 per year. The annual benefits to the public in terms of cleaner air, recreation, and reduced flooding are quantified at an estimated $2.1 million per year. Assuming 6% cost of capital calculate the CONVENTIONAL B-C ratio of the project
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