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For data shown, what is the benefit/cost ratio? BENEFITS Increase p. y. Additional business activity $3,000,000 per year 3% Estimated future economic activity $800,000


For data shown, what is the benefit/cost ratio? BENEFITS Increase p. y. Additional business activity $3,000,000 per year 3% Estimated future economic activity $800,000 per year 4% Reduction in accidents $175,000 per year 5% DIS-BENEFITS Destruction of vegetable gardens $295,000 per year 10% Reduction in business on present road $155,000 per year 7% COSTS Initial cost $31,000,000 over 15 years Maintenance cost $365,000 per year 9% Interest rate RATE 6% p. y. c. y. Life of project NPER 15 years

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