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A flood control project with a life of 12 years will require an investment of $300,000 and annual maintenance costs of $25,000. The project will provide no benefits for the first two years however will save $40,000 per year in flood damage starting in the third year. The appropriate MARR is 25 percent per year. What is the conventional B-C ratio with present worth for the flood control project?

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Microeconomics, Economics

Category:- Microeconomics
Reference No.:- M91223644

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