What is the benefit-cost ratio in view of the given data


Problem

The Adams Construction Company is bidding on a project to install a large flood drainage culvert from Dandridge to a distant lake. If they bid $2,000,000 for the job, what is the benefit-cost ratio in view of the following data? The MARR is 6% per year, and the project's life is 30 years.

Initial construction bid                                                                     $2,000,000

Right of way maintenance                                                               $30,000 per year

Major upkeep every six years, starting at the present time            $50,000

Annual benefit to the taxpayers                                                      $135,000

The response should include a reference list. Double-space, using Times New Roman 12 pnt font, one-inch margins, and APA style of writing and citations.

Solution Preview :

Prepared by a verified Expert
Microeconomics: What is the benefit-cost ratio in view of the given data
Reference No:- TGS02128017

Now Priced at $15 (50% Discount)

Recommended (95%)

Rated (4.7/5)