Several new box stores have created additional congestion at an intersection in north St. John's, Newfoundland. City engineers have recommended the addition of a turn lane, a computer controlled, signal and sidewalks, at an estimated cost of $1,500,000 dollars. The annual maintenance costs at the new intersection will be $10,000, but users will save $50,000 per year due to reduced waiting times. In addition, accidents are expected to decline, representing a property and medical savings/benefits of $160,000 dollars per year. The renovation is expected to handle traffic adequately for a 8 year period. The city uses a MARR of 6 percent. 1. Determine the BCR for this project 2. Determine the BCRM of the project Number Number
Several new box stores have created additional congestion at an intersection in north St. John's, Newfoundland. City engineers have recommended the addition of a turn lane, a computer controlled, signal and sidewalks, at an estimated cost of $1,500,000 dollars. The annual maintenance costs at the new intersection will be $10,000, but users will save $50,000 per year due to reduced waiting times. In addition, accidents are expected to decline, representing a property and medical savings/benefits of $160,000 dollars per year. The renovation is expected to handle traffic adequately for a 8 year period. The city uses a MARR of 6 percent. 1. Determine the BCR for this project 2. Determine the BCRM of the project Number Number
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
Related questions
Question
Transcribed Image Text:Reference Problem 10:29 (6th edition)
Question value 10
Several new box stores have created additional congestion at an intersection in north St. John's, Newfoundland. City engineers
have recommended the addition of a turn lane, a computer controlled, signal and sidewalks, at an estimated cost of $1,500,000
dollars. The annual maintenance costs at the new intersection will be $10,000, but users will save $50,000 per year due to
reduced waiting times. In addition, accidents are expected to decline, representing a property and medical savings/benefits of
$160,000 dollars per year. The renovation is expected to handle traffic adequately for a 8 year period. The city uses a MARR of
6 percent.
1. Determine the BCR for this project
2. Determine the BCRM of the project
NOTE: Round your answers to TWO decimal places
Number
Number
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
Step by step
Solved in 3 steps
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, finance and related others by exploring similar questions and additional content below.Recommended textbooks for you
Essentials Of Investments
Finance
ISBN:
9781260013924
Author:
Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:
Mcgraw-hill Education,
Essentials Of Investments
Finance
ISBN:
9781260013924
Author:
Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:
Mcgraw-hill Education,
Foundations Of Finance
Finance
ISBN:
9780134897264
Author:
KEOWN, Arthur J., Martin, John D., PETTY, J. William
Publisher:
Pearson,
Fundamentals of Financial Management (MindTap Cou…
Finance
ISBN:
9781337395250
Author:
Eugene F. Brigham, Joel F. Houston
Publisher:
Cengage Learning
Corporate Finance (The Mcgraw-hill/Irwin Series i…
Finance
ISBN:
9780077861759
Author:
Stephen A. Ross Franco Modigliani Professor of Financial Economics Professor, Randolph W Westerfield Robert R. Dockson Deans Chair in Bus. Admin., Jeffrey Jaffe, Bradford D Jordan Professor
Publisher:
McGraw-Hill Education