QUESTION 1 A local goverment is considering promoting tourism in the city. It will cost $5,000 to develop a plan. The anticipated annual benefits and costs are as follows: Annual benefits: Increased local income and tax collections $ 117,400. Annual support service: Parking lot expansion, rest room patrol car, and street repair $48,830. If the city government uses a discount rate of 6% and a study period of five years, is this tourism project justifiable according to the benefit-cost analysis? The project is justifiable based on the benetit-cost analysis OA The project is not justifiable based on the benefit-cost analysis OB. It is not possible to know with the information given OD. None of the above

QUESTION 1 A local goverment is considering promoting tourism in the city. It will cost $5,000 to develop a plan. The anticipated annual benefits and costs are as follows: Annual benefits: Increased local income and tax collections $ 117,400. Annual support service: Parking lot expansion, rest room patrol car, and street repair $48,830. If the city government uses a discount rate of 6% and a study period of five years, is this tourism project justifiable according to the benefit-cost analysis? The project is justifiable based on the benetit-cost analysis OA The project is not justifiable based on the benefit-cost analysis OB. It is not possible to know with the information given OD. None of the above

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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