The cost of grading and spreading gravel on a curvy rural road is expected to be $300,000. The road will have to be maintained at a cost of $24,000 per year. Even though the new road is not very smooth, it allows access to an area that previously could only be reached with off-road vehicles. The improved accessibility has led to a 198% increase in the property values along the road. If the previous market value of the property was $900,000, calculate the conventional B/C ratio using an interest rate of 6% per year and a 20-year study period. The conventional B/C ratio is
The cost of grading and spreading gravel on a curvy rural road is expected to be $300,000. The road will have to be maintained at a cost of $24,000 per year. Even though the new road is not very smooth, it allows access to an area that previously could only be reached with off-road vehicles. The improved accessibility has led to a 198% increase in the property values along the road. If the previous market value of the property was $900,000, calculate the conventional B/C ratio using an interest rate of 6% per year and a 20-year study period. The conventional B/C ratio is
Chapter1: Making Economics Decisions
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![The cost of grading and spreading gravel on a curvy rural road is expected to be $300,000. The road will have to be maintained at a
cost of $24,000 per year. Even though the new road is not very smooth, it allows access to an area that previously could only be
reached with off-road vehicles. The improved accessibility has led to a 198 % increase in the property values along the road. If the
previous market value of the property was $900,000, calculate the conventional B/C ratio using an interest rate of 6% per year and a
20-year study period.
The conventional B/C ratio is](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fe8633c30-f853-437b-bae0-9d3eb8b35cd4%2Fc4ca8826-6f7d-46d2-b1c3-65c4bc702f33%2F5mfaeqb_processed.jpeg&w=3840&q=75)
Transcribed Image Text:The cost of grading and spreading gravel on a curvy rural road is expected to be $300,000. The road will have to be maintained at a
cost of $24,000 per year. Even though the new road is not very smooth, it allows access to an area that previously could only be
reached with off-road vehicles. The improved accessibility has led to a 198 % increase in the property values along the road. If the
previous market value of the property was $900,000, calculate the conventional B/C ratio using an interest rate of 6% per year and a
20-year study period.
The conventional B/C ratio is
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