The following data is provided for a PPP project. To the People To the Government Benefits $145,000 per year beginning now Cost $1.8 million now and $200,000 every 3 years Disbenefits $25,000 per year Savings $105,000 per year Calculate the conventional benefit/cost ratios using an interest rate of 9% per year and an infinite project period

The following data is provided for a PPP project. To the People To the Government Benefits $145,000 per year beginning now Cost $1.8 million now and $200,000 every 3 years Disbenefits $25,000 per year Savings $105,000 per year Calculate the conventional benefit/cost ratios using an interest rate of 9% per year and an infinite project period

Managerial Economics: Applications, Strategies and Tactics (MindTap Course List)

14th Edition

ISBN:9781305506381

Author:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris

Publisher:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris

Chapter17: Long-term Investment Analysis

Section: Chapter Questions

Problem 10E

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	To the People		To the Government
Benefits	$145,000 per year beginning now	Cost	$1.8 million now and $200,000 every 3 years
Disbenefits	$25,000 per year	Savings	$105,000 per year