The bc ratio for a new water reservoir in texas is required


The B/C ratio for a new water reservoir in Texas is required to be 1.25. If the benefit is estimated at $2,900,000 per year and the maintenance cost is expected to be $1,800,000 per year, what is the allowed maximum initial cost of the project? The discount rate is 9% per year, and the project is expected to continue forever. Use annual worth values to solve this problem.

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Financial Accounting: The bc ratio for a new water reservoir in texas is required
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