Present worth for the flood control project

Reference no: EM13683896

A flood control project with a life of 12 years will require an investment of $300,000 and annual maintenance costs of $25,000. The project will provide no benefits for the first 2 years however will save $40,000 per year in flood damage starting in the 3 year. The appropriate MARR is 25% per year. What is the conventional B-C ratio with present worth for the flood control project?

Reference no: EM13683896

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