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 $186,000; life of 20 years and, annual M&O costs of $26,000. The department expects 22,000 people per year to use the facilities an average of 2 hours each. The value of the recreation has been conservatively set at $0.95 per hour. At a discount rate of 8% 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 $186,000; life of 20 years and, annual M&O costs of $26,000. The department expects 22,000 people per year to use the facilities an average of 2 hours each. The value of the recreation has been conservatively set at $0.95 per hour. At a discount rate of 8% per year, what is the B/C ratio for the project? The B/C ratio is

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Question

am. 135.

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 $186,000;
life of 20 years and, annual M&O costs of $26,000. The department expects 22,000 people per year to use the facilities an average of
2 hours each. The value of the recreation has been conservatively set at $0.95 per hour. At a discount rate of 8% per year, what is the
B/C ratio for the project?
The B/C ratio is

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