Question
The cash flow details of a public project is as follows Initial cost = BD 210000 Annual operating cost = BD 10000 Worth of annual
The cash flow details of a public project is as follows Initial cost = BD 210000 Annual operating cost = BD 10000 Worth of annual benefits = BD 12,000 Worth of annual disbenefits = BD 1245 Salvage value = BD 150000 Interest rate per year = 8% and useful lie = 30 Years Using benefit-cost ratio method and find out the economical acceptability of the public project. Use PW and AW methods to find out the equivalent worth of costs, benefits and disbenefits, also discuss why it is profitable (Use excel)
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