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The Adams Construction Company is bidding on a project to install a large flood drainage culvert from Dandridge to a distant lake. If they bid
The Adams Construction Company is bidding on a project to install a large flood drainage culvert from Dandridge to a distant lake. If they bid $2,000,000 for the job, what is the benefit-cost ratio in view of the following data? Is the project acceptable? The MARR is 6% per year, and the project's life is 30 years. Assume that major upkeep maintenance is required every 6 years, beginning in year 6; assume that no major upkeep maintenance is performed at the end of the project lifetime, in year 30
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