Opponents to charging an entrance fee as described in Problem 32 note that only 15,000 visitors will utilize the heritage center, and the benefits of \(\$ 5(14,000)+\$ 3(12,000)=\$ 106,000\) derived by the other 26,000 who do not visit will be lost. They argue that the true benefits are the \(\$ 7(6,000)+\$ 10(9,000)=\$ 132,000\), less a disbenefit of \(\$ 3(12,000)+\$ 5(14,000)=\$ 106,000\) for the visitors who will not pay the \(\$ 5.75\) to enter, thereby losing the previous recreational enjoyment from the heritage center. Their \(B / C\) ratio is as follows:

a. Identify any problems or concerns with this analysis.

b. Prepare your own \(B-C\) analysis if you believe this to be incorrect.

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BIC= $7(6,000) +$10(9,000) - $3(12,000) - $5.00(14,000) $250,000 $5.75(15,000) = = 0.16