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QUESTION 7 20 A road improvement project will result in the following costs and revenues. Cash flows Initial cost $12,000,000 Annual maintenance costs $685,500 Annual

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QUESTION 7 20 A road improvement project will result in the following costs and revenues. Cash flows Initial cost $12,000,000 Annual maintenance costs $685,500 Annual payroll-toll booth cost $450,000 Annul toll revenue $2,000,000 It is expected that toll collection will continue for 20 years. If the interest rate is 5%, compute the B/C ratio for this construction project. is the project acceptable? T T T Arial 3 (12pt) T Words:0 Path: P

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