An alternative has the following cash flows: benefits = $50,000 per year; disbenefits = $27,000 per year; costs = $25,000 per year. The B/C ratio is closest to: (choose one)
(a) 0.92
(b) 0.96
(c) 1.04
(d) 2.00
B/C = (50,000 – 27,000)/25,000 = 0.92
Answer is (a) 0.92
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