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(10 points) You need to perform a Benefit Cost analysis of a public project with a 20 year expected life. The initial investment is $2,000,000.
(10 points) You need to perform a Benefit Cost analysis of a public project with a 20 year expected life. The initial investment is $2,000,000. Revenues for the project will be $50,000 per year and annual maintenance costs are $45.000 per year. There will be $260.000 per year favorable consequences to the public and $80,000 per year of negative consequences. If the social discount rate is 6%, calculate the conventional Benefit Cost ratio. HINT: Use AW. you must show your work to get credit)
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