Question
The state is evaluating the following alternatives for a court-mandated upgrade of the corrections facilities. The states interest rate is 10%, and the life of
The state is evaluating the following alternatives for a court-mandated upgrade of the corrections facilities. The states interest rate is 10%, and the life of a prison is 60 years. What is the value of the appropriate benefit/cost ratio for the recommended alternative? a comparison of the first cost, operating cost, law enforcement travel, and visitor travel time for three different prisons:
| Prison | F | M | N |
|---|---|---|---|
| First cost ($M) | 12 | 15 | 17 |
| Operating cost ($K/yr) | 600 | 700 | 750 |
| Law enforcement travel ($K/yr) | 500 | 200 | 50 |
| Visitor travel time ($K/yr) | 200 | 75 | 20 |
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Finance Applications and Theory
Authors: Marcia Cornett, Troy Adair
3rd edition
1259252221, 007786168X, 9781259252228, 978-0077861681
