Question: For data shown, what is the benefit/cost ratio? BENEFITS Increase p. y. Additional business activity $2,000,000 per year 2% Estimated future economic activity $750,000 per
For data shown, what is the benefit/cost ratio?
| BENEFITS | Increase p. y. | ||
| Additional business activity | $2,000,000 | per year | 2% |
| Estimated future economic activity | $750,000 | per year | 3% |
| Reduction in accidents | $150,000 | per year | 4% |
| DIS-BENEFITS | |||
| Destruction of vegetable gardens | $250,000 | per year | 9.00% |
| Reduction in business on present road | $125,000 | per year | 6.00% |
| COSTS | |||
| Initial cost | $16,000,000 | over 15 years | |
| Maintenance cost | $320,000 | per year | 8% |
| Interest rate | RATE | 5% | p. y. c. y. |
| Life of project | NPER | 15 | years |
Group of answer choices
1.31
1.06
0.95
0.89
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