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For a Project Being Considered by a City in Alabama

Question 9

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For a project being considered by a city in Alabama, the following cost data is available. Determine both the modified and conventional B/C ratios.
Initial cost = $10 million.
O & M cost / year = $450,000
Estimated annual benefit = $850,000
Life = 25 Years
Salvage value = $1 million
MARR = 6%

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Modified B/C: 0.535
EUAC of initial cost...

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