There is no salvage value after 30 years community benefits, Business Economics

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There is no salvage value after 30 years community benefits

Use EAWs to calculate the benefit/cost ratio at i = 6% for a new library. The first cost is $500K, and O&M costs are $100K per year. There is no salvage value after 30 years. Community benefits are estimated to be $130K per year. Is the library economically justified?

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