Solve the problem on a present worth basis

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The cost and benefits for a proposed dike flood control systemare as follows:
Capital cost of dike= $1,040,000
Capital cost of pumping station= $475,000
Economic life of dike= 50 years
Economic life of pumping station= 25 years
Annual O&M= $20,000
Benefits (average annual)= $215,000
If i = 8%, determine the B/C ratio. Solve the problem on a present worth basis and the on anannualized basis.

Reference no: EM13243831

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