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Solve clearly Gehaz Zayed City is advancing a project for the construction of a new Service Cluster System in the new extension to attract new

Solve clearly

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Gehaz Zayed City is advancing a project for the construction of a new Service Cluster System in the new extension to attract new commerce to the city. The responsible committee has developed the following estimates for the effects of the project: Cost to wreck and remove current facilities 813000 Material, labour, and overhead for new construction 2778000 Annual operating and maintenance expenses 190000 Annual benefits from new commerce 509000 Annual disbenefits to sportsmen in area 30000 Project life 24 Interest rate 0.1 Calculate a) the conventional benefit-cost ratio using PW b) the modified benefit-cost ratio using PW Should the project be funded? 1 for Yes / 2 for No

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