The town of Elmira, Ontario, has limited parking for cars near its main shopping street. The town plans to pave a lot for parking near King Street. The main beneficiaries will be the merchants and their customers. The present worth of expected benefits is $3 000 000. The cost to the town of buying the lot, clearing, paving, and painting is expected to be $500 000. The present worth of expected maintenance costs over the lifetime of the project is $50 000. In the period in which the lot is being cleared and paved, there will be some dis-benefits to the local merchants and customers due to disruption of traffic in the King Street area. The present worth of the disruption is expected to be about $75 000. What is the benefit-cost ratio? A fire department in a medium-sized city is considering a new dispatch system for its firefighting equipment responding to calls. The system would select routes, taking into account recently updated traffic conditions. This would reduce response times. An indirect effect would be a reduction in required fire-fighting equipment. The present worth of benefits and costs are: Users' Benefits PW(benefits) $37 500 000 Sponsors' Costs PW(operating costs) $3 750 000 PW(capital costs for the city) $13 500 000 PW(reduced equipment requirements) $2 250 000