A local government is considering promoting to urism in the city. It will cost$8,000 to develop a plan. The anticipated annual benefits and costs are as follows:Annual benefits: Increased local income and tax collections $ 125,000Annual support service: Parking lot expansion, rest room. $50,000patrol car, and street repairIf the city government uses a discount rate of 8% and a study period of fiveyears. is this tourism project justifiable according to the benefit-cost analysis?
A local government is considering promoting to urism in the city. It will cost$8,000 to develop a plan. The anticipated annual benefits and costs are as follows:Annual benefits: Increased local income and tax collections $ 125,000Annual support service: Parking lot expansion, rest room. $50,000patrol car, and street repairIf the city government uses a discount rate of 8% and a study period of fiveyears. is this tourism project justifiable according to the benefit-cost analysis?
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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A local government is considering promoting to urism in the city. It will cost
$8,000 to develop a plan. The anticipated annual benefits and costs are as follows:
Annual benefits: Increased local income and tax collections $ 125,000
Annual support service: Parking lot expansion, rest room. $50,000
patrol car, and street repair
If the city government uses a discount rate of 8% and a study period of five
years. is this tourism project justifiable according to the benefit-cost analysis?
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