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The annual maintenance cost of a government project with a 14-year life is found to be $7,800. The annual benefits and disbenefits are $15,000 and
The annual maintenance cost of a government project with a 14-year life is found to be $7,800. The annual benefits and disbenefits are $15,000 and $2,000 per year, respectively. If the project is economically justified with a B/C ratio of 1.49, determine the initial cost of the project at an interest rate of 11% per year.
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