Calculate the benefit/cost ratio at i=5% for a highway project

Economics Nov 29, 2020

Calculate the benefit/cost ratio at i=5% for a highway project. The first cost is $150,000 and O&M costs are $5,000 per year. There is no salvage value after 20 years. Time savings to users are worth $35,000 per year, and neighborhood disruption is a dis-benefit of $10,000 per year. Is this project considered a good investment?

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