Textbook Notes (368,418)
Canada (161,876)
Economics (747)
ECON 2B03 (10)
Chapter 10

Chapter 10.pdf

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Department
Economics
Course
ECON 2B03
Professor
Bridget O' Shaughnessy
Semester
Fall

Description
Chapter 10Evaluating Projects with the BenefitCost Ratio Method BCThe BC ratio method is the time value of money considering the timing of cash flows occurring after the purchase of a project Therefore the BC ratio is actually a ration of discounted benefits to discounted costsBC ratio is the ratio of the equivalent worth PW or AW of benefits to the equivalent worth of costs Modified BC ratio with PWA project is acceptable when the BC ratio is greater than or equal to one
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