The estimated first cost of a permanent national monument is $2 million with annual benefits and disbenefits estimated at $360,000 and $42,000, respectively. The B/C ratio at 6% per year is closest to: (choose one)
(a) 0.16
(b) 0.88
(c) 1.73
(d) 2.65
B/C = (360,000 – 42,000)/[2,000,000(0.06)]
= 2.65
Answer is (d) 2.65
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