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Which of the projects in the following table are worth pursuing if the public agency is required to use a discount rate of 7%? The
Which of the projects in the following table are worth pursuing if the public agency is required to use a discount rate of 7%? The other benefits include growth in the regional economy, reduction in congestion, improved safety, and improvements in health. These are all economic benefits to the region, although they produce no revenue that can be used to help cover theinvestment or operating costs.
Possible Projects for a Public Agency Annual Revenue Annual N Value of Other Benefits Investment Cost S 10 million 6.5 million 0 S 10 million 8 mn 0 S 10 million 1 mio S0.2 milo 0.2 million S 10 million 0.2 million $0.2 i 1 million $ 50 million 2 $3 mil 3 million S100 mion $10 mii $1 min 3 milion) $100 mlion $20 million $1 ($10 million)Step by Step Solution
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