Los flujos de efectivo anuales estimados para un proyecto propuesto por el gobierno de una ciudad, son costos de $450,000 por año, beneficios de $600,000 anuals y pérdidas de $100,000 por año

Economics Aug 12, 2020

Los flujos de efectivo anuales estimados para un proyecto propuesto por el gobierno de una ciudad, son costos de $450,000 por año, beneficios de $600,000 anuals y pérdidas de $100,000 por año. Determine a) la razón de Costo Beneficio B/C, y b) el valor B-C.

Expert Solution

a. Computation of Cost Benefit (B/C) Ratio:

Cost Benefit (B/C) Ratio = (Annual Benefits - Annual Losses) / Annual Costs

= ($600,000 - $100,000) / $450,000

= $500,000/$450,000

= 1.11

Since, B/C ratio is greater than 1, the project is economically justified.

b. Computation of Value of B-C:

Value of B-C = Estimated Net Benefits - Estimated Cost

= $500,000 - $450,000

Value of B-C = $150,000

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