Required information The following data is provided for a PPP project. To the People To the Government $1.8 million now and $200,000 every 3 years $130,000 per yenr Benefits $85,000 per year beginning now Cost Disbenefits $55,000 per year Savings Calculate the conventional benefticost ratios using an interest rate of 5% per year and an infinite project period. The conventional B/C ratio is 04504 The following dats is provided for a PPP project. To the Government $1.8 million now and $200,000 every 3 years $130,000 per year To the People Benefits $85,000 per year beginning now Cost Disbenefits $55,000 per year Savings Calculate the modified benefit/cost ratios using an interest rate of 5% per year and an infinite project period. The modified B/C ratio is 0.4504
Required information The following data is provided for a PPP project. To the People To the Government $1.8 million now and $200,000 every 3 years $130,000 per yenr Benefits $85,000 per year beginning now Cost Disbenefits $55,000 per year Savings Calculate the conventional benefticost ratios using an interest rate of 5% per year and an infinite project period. The conventional B/C ratio is 04504 The following dats is provided for a PPP project. To the Government $1.8 million now and $200,000 every 3 years $130,000 per year To the People Benefits $85,000 per year beginning now Cost Disbenefits $55,000 per year Savings Calculate the modified benefit/cost ratios using an interest rate of 5% per year and an infinite project period. The modified B/C ratio is 0.4504
Chapter11: Capital Budgeting Decisions
Section: Chapter Questions
Problem 19EA: Redbird Company is considering a project with an initial investment of $265,000 in new equipment...
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