If the local government invests in a project which has a 20 years useful life and initial investment of 2.25 million dollars and the yearly benefit is $250,0 with a maintenance cost (starting in year 1), what is Benefit Cost Ratio (rounded to the whole percentage, no decimals)? none of the given choices 80%, B C 75%,

Managerial Economics: Applications, Strategies and Tactics (MindTap Course List)
14th Edition
ISBN:9781305506381
Author:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris
Publisher:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris
Chapter17: Long-term Investment Analysis
Section: Chapter Questions
Problem 10E
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If the local government invests in a project which has a 20 years useful life and initial investment of 2.25 million dollars and the yearly benefit is $250,000,
with a maintenance cost (starting in year 1), what is Benefit Cost Ratio (rounded to the whole percentage, no decimals)?
none of the given choices
80%,
B.
С
75%,
D.
60%,
Transcribed Image Text:If the local government invests in a project which has a 20 years useful life and initial investment of 2.25 million dollars and the yearly benefit is $250,000, with a maintenance cost (starting in year 1), what is Benefit Cost Ratio (rounded to the whole percentage, no decimals)? none of the given choices 80%, B. С 75%, D. 60%,
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