The estimated annual cash flows for a proposed municipal government project are costs of $790,000 per year, benefits of $990,000 per year, and disbenefits of $240,000 per year. Calculate the conventional BC ratio at an interest rate of 8% per year, and determine if it is economically justified The B/C ratio is The project is economicall ack to select: not justified justified The city engineer and economic development directors are evaluating two sites for construction of a multipurpose sports arena. The sites are downtown (DT) and southwest (SW) of the metropolitan area. The city already owns enough land at the DT site; however, the land for a parking garage will cost $1 million, and construction costs will be $22 milion for the parking garage, infrastructure relocation and drainage. The SW site is 30 km from downtown, but the land will be donated by a developer who knows that an arena at this site dramatically increase the value of the remainder of his land holdings. Because of its centralized location, there will be greater attendance at most of the events held at the DT site. This will result in more revenue to vendors and local merchants in the amount of $500,000 per year Additionally, the average attendee will not have to travel as far, resulting in annual benefits of $400,000 per year All other costs and revenues are expected to be the s ame at either site ifthe city uses a discount rate of 6% per year, and wil construct at one site or the other, which site should be selected? Use a 30-year study period The ratio is Select sitiCis oselect southwest of metropoitian area