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

ENGR.ECONOMIC ANALYSIS
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Chapter1: Making Economics Decisions
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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.

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
Transcribed Image Text: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
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