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The federal government proposes to construct a multipurpose water project to provide water for irrigation and municipal use. In addition, there are flood control and
The federal government proposes to construct a multipurpose water project to provide water for irrigation and municipal use. In addition, there are flood control and recreation benefits. The annual benefits are per year for each year in the decades indicated are given below. The operation and maintenance cost is exist15,000 per year. Assume a 50-year analysis period with no net project salvage value. If an interest rate of 4% is used, and a benefit-cost ratio of unity, what capital expenditure can be justified to build the water project now? exist1, 042, 725 exist578, 667 exist754, 337 exist656, 432
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