A new water treatment plant proposed for Anytown, has an initial cost of P56 million. The new plant will service the 7,500 residential customers for the next 30 years. It is expected to save each...

A new water treatment plant proposed for Anytown, has an initial cost of P56 million. The new plant will service the 7,500 residential customers for the next 30 years. It is expected to save each customer P125 per year. The plant will require a major overhaul every 5 years, costing 1 Million. Determine the benefit/cost ratio at the city’s interest rate of 6%. (Use PW and EUAC)

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