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Assume a Project Has $500 in Initial Costs

Question 3

Multiple Choice

Assume a project has $500 in initial costs.If annual benefits of the project are $800 and annual costs are $500, using a discount rate of 5%, what is the discounted benefit/cost ratio over 3 years?


A) 1.20
B) 1.36
C) 1.17
D) 1.09

Correct Answer:

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