Calculate the benefit-cost ration of this project

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Reference no: EM131599717

Local department of public works just evaluated a project of a new hydro power plant. Summary of this evaluation states that this 50-year project will result in:

- $5 million in initial investment;

- $6 million in opearting costs in terms of present worth;

- $17 million in sales revenues from production of electricity in terms of present worth;

- $8 million in savings from flood prevention in terms of present worth;

- $9 million in losses from destruction of a municipal beach in terms of present worth.

Calculate the benefit-cost ration of this project (Round your answer to 2 decimal points)

Reference no: EM131599717

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