Question
The two highways shown below are to be compared using the Modified B/C Method. Using an interest rate of 10% per year, determine which highway,
The two highways shown below are to be compared using the Modified B/C Method. Using an interest rate of 10% per year, determine which highway, if either, should be built. Highway A/B
First Cost $5,000,000/$8,000,000
Annual Maintenance Cost $70,000/$95,000
Annual Benefits $160,000/$150,000
Annual Disbenefits $30,000/$35,000
Life, years Infinity/Infinity
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Inside Company Valuation
Authors: Angelo Corelli
1st Edition
3319537822, 9783319537825
