Calculate the Modified B- C Ratio, with PW as the Equivalent-

question 3

Short Answer

Calculate the modified B- C ratio, with PW as the equivalent- worth measure, for the following cash flow estimates of a public project at an interest rate of 2% per year. $$\begin{array} { | l | l | } \hline \text { Items } & \text { Cash Flow, } \$ \\\hline \text { Initial cost, } \$ & 600,000 \\\hline \text { AW of benefits, } \$ / y r & 580,000 \\\hline \text { PW of disbenefits, } \$ & 580,000 \\\hline \text { O\&M costs, } \$ / y r & 25,000 \\\hline \text { Project life, yr } & 20 \\\hline\end{array}$$

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Refers to the sizes, amounts, or extents of different entities or variables in a context, often used in economic analysis.

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