Answer:
1.51
Explanation:
Calculation for the conventional B/C ratio
First step is to calculate B
B = $900,000(200%) -$900,000
B= $1,800,000-$900,000
B=$900,000
Second Step is to calculate C
C = $300,000 + $26,000(P/A,6%,20)
C= $300,000 + $26,000(11.4699)
C=$300,000+$298.218
C= $598,218
Last step is to calculate B/C ratio
Using this formula
B/C ratio=B/C
Let plug in the formula
B/C ratio = 900,000/598,218
B/C ratio= 1.5044
B/C ratio=1.51 Approximately
Therefore the conventional B/C ratio will be 1.51
