From the following estimates, determine the B/C ratio for a project that has a 20-year life. Use an interest rate of 8% per year.
|
Consequences to the People
|
Consequences to the Government
|
|
Annual
|
$90,000
|
First
|
$750,000
|
|
benefi ts
|
per year
|
cost
|
|
|
Annual
|
$10,000
|
Annual
|
$50,000
|
|
disbenefi ts
|
per year
|
cost
|
per year
|
|
|
Annual
|
$30,000
|
|
|
savings
|
per year
|