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A Public Sector Project Will Have the Following Cash Flows

Question 1

Multiple Choice

A public sector project will have the following cash flows.
Annual benefits = $900,000
Expected annual dis-benefits (quantifiable) = $50,000
Initial Cost = $10M
Yearly maintained cost = $ 80,000.
Life = 50 years.
If MARR is 7%, what is the modified B/C ratio for this project?


A) 1.056
B) 1.053
C) 1.058
D) 1.062

Correct Answer:

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