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Compute the benefit-cost ratio for the individual

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Ten cavemen with a remaining average life expectancy of 10 years use a path from their cave to a spring some distance away. The path is not easily traveled due to 100 large stones that could be removed. The annual benefit to each individual if the stones were removed is $9.75. Each stone can be removed at a cost of $1.25. The interest rate is 2 %. Compute the benefit/cost ratio for the individual if he alone removed the 100 stones.

Reference no: EM132643707

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