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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