The estimated annual cash flows for a proposed municipal government project are costs of $710,000 per year, benefits of $890,000 per year, and disbenefits of $210,000 per year. Calculate the conventional B/C ratio at an interest rate of 9% per year, and determine if it is economically justified. 1.39 The project is economically not justified The B/C ratio is

The estimated annual cash flows for a proposed municipal government project are costs of $750,000 per year, benefits of $900,000 per year, and disbenefits of $225,000 per year. Calculate the conventional B/C ratio at an interest rate of 6% per year and determine if it is economically justified

From the following data, use the conventional B/C ratio for a project that has a 20-year life to determine if it is economically justified. Use an interest rate of 8% per year. Consequences To the People Annual benefits = $135,000 per year Annual disbenefits = $10,000 per year The B/C ratio is The project is [[(Click to select) To the Government First cost = $700,000 Annual cost Annual savings $141,000 per year $30,000 per year E =

From the following data, use the conventional B/C ratio for a project that has a 20-year life to determine if it is economically justified. Use an interest rate of 8% per year. To the People Annual benefits = $105,000 per year Annual disbenefits = $10,000 per year The B/C ratio is The project is_ To the Government First cost = $550,000 Annual cost = $29,000 per year Annual savings: $30,000 per year

A rural, agriculture-based city that has 17,000 households is required to install treatment systems for the removal of arsenic and other harmful chemicals from its drinking water. The annual cost is projected to be $150 per household per year. Assume that one life will be saved every 3 years as a result of the removal systems. (a) What is the B/C ratio, if a human life is valued at $4.8 million? Use an interest rate of 8% per year and assume the life is saved at the end of each 3-year period. (b) What justifies the project?

The National Environmental Protection Agency has established that 2.5% of the median household income is a reasonable amount to pay for safe drinking water. For a median household income of $45,000 per year, what would the health benefits have to be (in dollars per household per year) for the B/C ratio to be equal to 1.5?

A consultant, after 3 months of work, reported that the modified B/C ratio for a city-owned hospital heliport project is 1.6. If the initial cost is $1.8 million and the annual benefits are $125,000, what is the amount of the annual M&O costs used in the calculation? The report stated that a discount rate of 7% per year and an estimated life of 35 years were used. The M&O cost is $ .

Identify the viewpoint (e.g., budget, government unit, citizen, business owner), and categorize the following cash flows as a benefit, disbenefit, or cost: (a) $600,000 annual income to area businesses from tourism created by new freshwater reservoir/ recreation area (b) $450,000 per year for repainting of bridge across the Mississippi River (c) $800,000 per year maintenance by containership port authority (d) Loss of $1.6 million in salaries for border residents because of strict enforcement of immigration laws (e) Reduction of $600,000 per year in car repairs because of improved roadways ( f ) Expenditure of $350,000 for guardrail replacement on freeway (g) $1.8 million loss of revenue by farmers because of highway right-of-way purchases

In a conventional B/C ratio: (a) Disbenefits and M&O costs are subtracted from benefits (b) Disbenefits are subtracted from benefits, and M&O costs are subtracted from costs (c) Disbenefits are subtracted from benefits, and M&O costs are added to costs (d) Disbenefits are added to costs, and M&O costs are subtracted from benefits