The Boundary Waters Canoe Area Wilderness (BWCA) located in northeastern Minnesota has 1 million acres of wilderness,

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The Boundary Waters Canoe Area Wilderness (BWCA) located in northeastern Minnesota has 1 million acres of wilderness, 1,000 waterways, and 1,500 miles of canoe routes. While some youth, for example those in the Boy Scouts, are on high-adventure treks for 10 days at a time, it is common to have the rest of their family take advantage of the opportunity to also enjoy the BWCA area. A new area for this purpose is to be developed and will have an equivalent annual cost of \(\$ 30,000\), including initial cost (design, clearing, potable water, restrooms, showers, road, etc.), operating, upkeep, and security. Approximately 250 families will camp for 8 days each during the summer season. Another 2,200 persons will be admitted for single-day use of the facilities during the summer season. Estimates are that 30 percent of the camping families perceive \(\$ 7\) in benefits, 60 percent receive \(\$ 15\), and 10 percent enjoy \(\$ 25\) of recreation. For the day users, 40 percent receive \(\$ 3\) in benefits, and 60 percent receive \(\$ 5\) in benefits. If a charge of \(\$ 15\) is charged to campers only and day users are charged \(\$ 4\), Campers and day users will use the facilities unless the charge exceeds their perceived benefits.

a. calculate \(B / C\).

b. calculate \(B-C\).

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Principles Of Engineering Economic Analysis

ISBN: 9781118163832

6th Edition

Authors: John A. White, Kenneth E. Case, David B. Pratt

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