What is the benefit-cost ratio in view of the given data

Reference no: EM131506875

Question: The Adams Construction Company is bidding on a project to install a large flood drainage culvert from Dandridge to a distant lake. If they bid $2,000,000 for the job, what is the benefit-cost ratio in view of the following data? The MARR is 6% per year, and the project's life is 30 years.

Initial construction bid $2,000,000

Right of way maintenance $30,000 per year

Major upkeep every six years, starting at the present time $50,000

Annual benefit to the taxpayers $135,000

Reference no: EM131506875

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