Answer to Question #244931 in Civil and Environmental Engineering for Alan Enrico V Tuib

Question #244931
The Parks and Recreation Department of Burkett County estimates that the initial cost of a “barebones” permanent river park will be $2.3 million. Annual upkeep costs are estimated at $120,000. Benefits of $340,000 per year and disbenefits of $40,000 per year have also been identified. Using a discount rate
of 6% per year, calculate (a) the conventional B/C ratio and (b) the modified B/C ratio.
1
Expert's answer
2021-10-06T00:31:21-0400


(1) PW of cost = $1000


PW of benefits"= 300(P\/A, 6\\%,5) = 300\\times4.212 = 1263.6"


B/C ratio = 1.263


(2) PW of cost = $1000


"PW of benefits = 500(P\/A, 6\\%, 5) - 50(P\/G, 6\\%,5) = 500x4.212 - 50 x 7.934 = 1709.3"

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