A municipality has just spent $8 million to build a second bridge across the city river to handle the increased traffic between the banks. City engineer calculated that the bridge allows to reduce travel time for the road users by $15.5 million over the 25-year period of the service life of the bridge calculated in terms of today's dollars. The construction also leads to a decrease in the value of surrounding property by $6.4 million over the service life in terms of today's dollars. The bridge requires $3.5 million for operation and maintenance over its service life in terms of today's dollars. What is the benefit-cost ratio of the project? 1.08 1.32 1.94 0.87 0.96

A municipality has just spent $8 million to build a second bridge across the city river to handle the increased traffic between the banks. City engineer calculated that the bridge allows to reduce travel time for the road users by $15.5 million over the 25-year period of the service life of the bridge calculated in terms of today's dollars. The construction also leads to a decrease in the value of surrounding property by $6.4 million over the service life in terms of today's dollars. The bridge requires $3.5 million for operation and maintenance over its service life in terms of today's dollars. What is the benefit-cost ratio of the project? 1.08 1.32 1.94 0.87 0.96

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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