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

See similar textbooks

Similar questions

what specific cost is the normal rate of return to a company?
There is economies of scale if the average cost of production is lower for bigger scale of operations compared to the average cost of production for smaller scale of operations True False
please explain so I can understand. Engineering Econ
Please explain step by step (Engineering Econ)
i need 7, 8 parts Solution
Please help me understand this with explanation and complete solutions thank you
Please I need the solutions FOR JUST SUB QUESTIONS d,e and f. Thank you
show complete solution on paper
Show full solutions clearly, thanks
Could I have help with c and d (and making sure the first part is correct) ?
Kindly explain the steps involved. I want to understand the intuition behind it. Thank you!
Solve it correctly not wrong solution gives here not wrong