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Calculate the conventional B/C ratio for the following cash flow estimates at a discount rate of 4% per year.
Item | Cash Flow |
PW of benefits, $ | 3,800,000 |
AW of disbenefits, $/year | 50,000 |
First cost, $ | 2,200,000 |
M&O costs, $/year | 350,000 |
Life of project, years | 15 |
**The answers presented below were calculated using the appropriate factors from interest tables including all their decimal places**
Question 24 options:
| B/C= 0.66 |
| B/C= 0.53 |
| B/C= 1.47 |
| B/C= 1.27 |
Answer & Explanation
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