As part of the rehabilitation of the downtown area of a southern U.S. city, the Parks and Recreation Department expects to develop the space below several overpasses into basketball, handball, miniature golf, and tennis courts. The estimates are initial cost of $194,000; life of 20 years and, annual M&O costs of $12,000. The department expects 16,000 people per year to use the facilities an average of 2 hours each. The value of the recreation has been conservatively set at $1.1 per hour. At a discount rate of 9% per year, what is the B/C ratio for the project? The B/C ratio is
As part of the rehabilitation of the downtown area of a southern U.S. city, the Parks and Recreation Department expects to develop the space below several overpasses into basketball, handball, miniature golf, and tennis courts. The estimates are initial cost of $194,000; life of 20 years and, annual M&O costs of $12,000. The department expects 16,000 people per year to use the facilities an average of 2 hours each. The value of the recreation has been conservatively set at $1.1 per hour. At a discount rate of 9% per year, what is the B/C ratio for the project? The B/C ratio is
Chapter1: Making Economics Decisions
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![As part of the rehabilitation of the downtown area of a southern U.S. city, the Parks and Recreation Department expects to develop the
space below several overpasses into basketball, handball, miniature golf, and tennis courts. The estimates are initial cost of $194,000;
life of 20 years and, annual M&O costs of $12,000. The department expects 16,000 people per year to use the facilities an average of
2 hours each. The value of the recreation has been conservatively set at $1.1 per hour. At a discount rate of 9% per year, what is the
B/C ratio for the project?
The B/C ratio is](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F907cebdc-02ae-4d1f-a274-8fd5520168cc%2F2fe3a4e7-1cc8-4258-8c1a-fe95811f9a98%2Fscp5sof_processed.jpeg&w=3840&q=75)
Transcribed Image Text:As part of the rehabilitation of the downtown area of a southern U.S. city, the Parks and Recreation Department expects to develop the
space below several overpasses into basketball, handball, miniature golf, and tennis courts. The estimates are initial cost of $194,000;
life of 20 years and, annual M&O costs of $12,000. The department expects 16,000 people per year to use the facilities an average of
2 hours each. The value of the recreation has been conservatively set at $1.1 per hour. At a discount rate of 9% per year, what is the
B/C ratio for the project?
The B/C ratio is
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