Question
The city of Columbus has identified three options for a public recreation area suitable for informal family activities and major organized events. As with most
The city of Columbus has identified three options for a public recreation area suitable for informal family activities and major organized events. As with most alternatives today, there are benefits, disbenefits, costs, and some savings. These have been estimated with the help of an external planning consultant and are identified in the table below. In each case, these are annualized over a 10-year planning horizon.
a. Determine the B/C ratio for each option
b. Determine which option should be selected using the incremental B/C ratio. (i know its option 2)
c. Determine which option should be selected using the B-C for each option. (option 2)
d. At what value of Option 2 costs are you indifferent between Option 1 and Option 2?
*for a. I tried just dividing the Benefits by the Costs and that is incorrect.. I also tried (Benefits+Savings)/(Disbenefits+Costs) and that was also incorrect.
Please help! Thank you!
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