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

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