Benefits
Additional business and commerce	$5,000,000	per year
Estimated future economic activity	$1,250,000	per year
Reduction in accidents	$500,000	per year
Dis-benefits
Destruction of vegetable gardens	$500,000	per year
Reduction in business on present road	$250,000	per year
Cost
Initial Cost	$39,000,000	over 30 years
Maintenance Cost	$256,000	per year

Note that Initial Cost is present value. You may convert into annual cost over 30 years at a specific rate.

Based on B/C Ratio analysis, should the city construct the by-pass? The rate that the city uses for its economic analysis is 5%.

Please use excel to solve this question