Initial construction bid $2,000,000 Right of way maintenance Major upkeep every six years, starting at the present time Annual benefit to the taxpayers $30,000 per year $50,000 $135,000
Initial construction bid $2,000,000 Right of way maintenance Major upkeep every six years, starting at the present time Annual benefit to the taxpayers $30,000 per year $50,000 $135,000
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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The Adams Construction Company is bidding on a project to install a large flood drainage culvert from Dandridge to a distant lake. If they bid $2,000,000 for the job, what is the benefit-cost ratio in view of the following data? The MARR is 6% per year, and the project’s life is 30 years.
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