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Homework answers / question archive / Select the better of two proposals to improve street safety and lighting in a colonia in south central New Mexico
Select the better of two proposals to improve street safety and lighting in a colonia in south central New Mexico. Use a B/C analysis and an interest rate of 8% per year. Proposal 1 Proposal 2
Initial cost, $ 900,000 1,700,000
Annual M&O cost, $/year 120,000 60,000
Annual benefits, $/year 530,000 650,000
Annual disbenefits, $/year 300,000 195,000
Life, years 25 30
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