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The estimated annual cash ows for a proposed municipal government project are costs of $750,000 per year, benets of $900,000 per year, and disbenets of
The estimated annual cash ows for a proposed municipal government project are costs of $750,000 per year, benets of $900,000 per year, and disbenets of $225,000 per year. Calculate the conventional B/C ratio at an interest rate of 6% per year and determine if it is economically justied.
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