Question
The following data is provided for a PPP project. To the People To the Government Benefits $90,000 per year beginning now Cost $1.8 million now
The following data is provided for a PPP project.
| To the People | To the Government | ||
| Benefits | $90,000 per year beginning now | Cost | $1.8 million now and $200,000 every 3 years |
| Disbenefits | $30,000 per year | Savings | $120,000 per year |
Calculate the modified benefit/cost ratios using an interest rate of 9% per year and an infinite project period.
The modified B/C ratio is ( )
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Finance Applications And Theory
Authors: Marcia Cornett, Troy Adair, John Nofsinger
5th Edition
1260013987, 9781260013986
