In order to improve a certain number of public parks in the city of Los Angeles, a proposed 20 year plan has a first cost of $200,000, M&O costs of $25,000.00 per year. The Parks & Recreation Management Bureau expects that 30,000 new people per year will use the improved parks at an average of 3 hours each. The value of such recreation is $1.25 per hour. If i = 6% per year, utilize the B/C ratio analysis to determine if the project is justified or not (state your final decision!).

In order to improve a certain number of public parks in the city of Los Angeles, a proposed 20 year plan has a first cost of $200,000, M&O costs of $25,000.00 per year. The Parks & Recreation Management Bureau expects that 30,000 new people per year will use the improved parks at an average of 3 hours each. The value of such recreation is $1.25 per hour. If i = 6% per year, utilize the B/C ratio analysis to determine if the project is justified or not (state your final decision!).

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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