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A water conservation project funded by the federal government will have an initial cost (year 0) of $1 million and an upgrade cost of $300,000 in year five.

The annual operating costs are expected to be $100,000.

The water saved is valued at $200,000 in years one through four, and $50,000 each year thereafter through the 10 year life of the project.

If the water saved is considered to be a benefit to the people, the B/C ratio at an interest rate of 6% per year is closest to ?

Microeconomics, Economics

  • Category:- Microeconomics
  • Reference No.:- M92634133

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