Major Projects Proposal The proposal that has been supported by the "town and gown" crowd includes a small auditorium theater and a library as well as the gym (see Table 16-2). Major Projects Inc. has evaluated the proposal over 30 years of use for the benefits and for a 12-month term for the construction phase. Major Projects has assumed end-of-period cash flows, but they have analyzed the construction phase as 12 months-each with an equal share of the construction expenditures. Their calculated B/C ratio is Table 16-2 Major Projects Proposal Construction: 12 months: $4.8 million Annual operation: Gym: $110,000 City offices: $165,000 Library: $450,000 (mostly salaries) Theater: $65,000 Annual benefit: Gym: 60 hours/week at $200/hour Library: $0.5 million in improved education Theater: 16 hours/week at $450/hour