Determine the benefit-cost ratio

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Reference no: EM131809477

A new water treatment plant proposed for Any town, USA, has an initial cost of $6M. The new plant will service the 7500 residential customers for the next 30 years. It is expected to save each customer $125 per year. The plant will require a major overhaul every 5 years, costing $1M. Determine the benefit/cost ratio at the city's interest rate of 6%.

Reference no: EM131809477

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