A city municipality is considering building a new recreational project that will generate $700,000 in benefits per
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A city municipality is considering building a new recreational project that will generate $700,000 in benefits per year. Assume that that the project will cost $5 million to build and that 2% of this amount is classifed as a
yearly added benefits resulting from this project. Calculate the B-C ratio for this project using the B-C ratio method and assuming that the cost is reduced by the amount of the added benefits. Assume a 12-year study
period and that the company's MARR is 7%.
A 1.2423
B 1.322
C 1.1701
D 1.1044
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