All of the following cash flows can be identified as benefits, except: (a) Longer tire life because of smooth pavement (b) $200,000 annual income to local businesses because of tourism created by water reservoir (c) Expenditure of $20 million for construction of a highway (d) Fewer highway accidents because of improved lighting

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A: B/C analysis i.e. benefit-cost analysis gives the ratio of benefits and costs in the same period. It…

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