As part of the rehabilitation of the downtown area of a southern U.S. city, the Parks and Recreation Department expects to develop the space below several overpasses into basketball, handball, miniature golf, and tennis courts. The estimates are initial cost of $186,000; life of 20 years and, annual M&O costs of $26,000. The department expects 22,000 people per year to use the facilities an average of 2 hours each. The value of the recreation has been conservatively set at $0.95 per hour. At a discount rate of 8% per year, what is the B/C ratio for the project? The B/C ratio is

As part of the rehabilitation of the downtown area of a southern U.S. city, the Parks and Recreation Department expects to develop the space below several overpasses into basketball, handball, miniature golf, and tennis courts. The estimates are initial cost of $186,000; life of 20 years and, annual M&O costs of $26,000. The department expects 22,000 people per year to use the facilities an average of 2 hours each. The value of the recreation has been conservatively set at $0.95 per hour. At a discount rate of 8% per year, what is the B/C ratio for the project? The B/C ratio is

Managerial Economics: Applications, Strategies and Tactics (MindTap Course List)

14th Edition

ISBN:9781305506381

Author:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris

Publisher:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris

Chapter17: Long-term Investment Analysis

Section: Chapter Questions

Problem 10E

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