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Riyadh City is planning a public recreational facility with an initial cost of SR 7.2 Million and a maintenance cost of 800,000/year. Number of people
Riyadh City is planning a public recreational facility with an initial cost of SR 7.2 Million and a maintenance cost of 800,000/year. Number of people expected to visit the facility is 90,000 person/year. 40% of visitors will receive a benefit of SR 12/visit, 45% will receive SR 18/visit, and 15% will receive SR 28/visit. For a 30-year planning horizon and 6% interest rate, the B/C ratio of the investment is closest to:
a) 0.909
b) 0.984
c) 1.069
d) 1.163
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