5 The city of Danville is considering building a second river crossing to improve traffic-flow in the downtown core at an estimated cost of $A. The annual maintenance costs of the crossing will be $B, but users will save $C per year due to reduced waiting time. In addition, accidents are expected to drop by 40% representing a property and medical savings of $D per year. The crossing is expected to handle traffic adequately over a 20-year period. MARR = A= B= C= D= BCR (to 4 decimals) = BCRM (to 4 decimals) = 8% $2,500,000 $5,500 $60,000 $129,600 Try Again Try Again On the basis of BCR, should the city proceed with this project?
5 The city of Danville is considering building a second river crossing to improve traffic-flow in the downtown core at an estimated cost of $A. The annual maintenance costs of the crossing will be $B, but users will save $C per year due to reduced waiting time. In addition, accidents are expected to drop by 40% representing a property and medical savings of $D per year. The crossing is expected to handle traffic adequately over a 20-year period. MARR = A= B= C= D= BCR (to 4 decimals) = BCRM (to 4 decimals) = 8% $2,500,000 $5,500 $60,000 $129,600 Try Again Try Again On the basis of BCR, should the city proceed with this project?
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
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Transcribed Image Text:5 The city of Danville is considering building a second river crossing to improve traffic-flow in
the downtown core at an estimated cost of $A.
The annual maintenance costs of the crossing will be $B, but users will save $C per year due to reduced
waiting time. In addition, accidents are expected to drop by 40% representing a property and medical
savings of $D per year.
The crossing is expected to handle traffic adequately over a 20-year period.
MARR =
A=
B=
C=
D=
BCR (to 4 decimals) =
BCRM (to 4 decimals) =
8%
$2,500,000
$5,500
$60,000
$129,600
Try Again
Try Again
On the basis of BCR, should the city proceed with this project?
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