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The estimated annual cash flows for a proposed municipal government project are costs of $830,000 per year, benefits of $910,000 per year, and disbenefits of
The estimated annual cash flows for a proposed municipal government project are costs of $830,000 per year, benefits of $910,000 per year, and disbenefits of $280,000 per year. Calculate the conventional B/C ratio at an interest rate of 9% per year, and determine if it is economically justified.
The B/C ratio is .
The project is economically is justified or nonjustified
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