Ratio with present worth for the flood control project

Reference no: EM13684325

A flood control project with a life of 18 years will need an investment of $200,000 and annual maintenance costs of $15,000. The project will provide no benefits for the first two years however will save $80,000 per year in flood damage starting in the third year. The appropriate MARR is 18 percent per year. What is the conventional B-C ratio with present worth for the flood control project?

Reference no: EM13684325

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