Big City Carl, a local politician, is pushing a newdock
Chapter , Problem 16-34(choose chapter or problem)
Big City Carl, a local politician, is pushing a newdock and pier systemat the river to attract commerce.A committee appointed by the mayor (an opponentofCarls) has developed the following estimates.Cost to remove current$ 750,000facilitiesMaterial, labor, and overhead for 2,750,000new constructionAnnual operating & maintenance 185,000costsAnnual benefits from new550,000commerceAnnual disbenefits to sportsmen 35,000Project life20 yearsInterest rate8%(a)Using theconventionalB/C ratio, determinewhether the project should be funded.(b)After studying the numbers given by thecommittee, Big City Carl argued that the projectlife should beat least25 years and more likelycloser to 30 years. How did he arrive at thisestimate, and why is he making this statement?
Unfortunately, we don't have that question answered yet. But you can get it answered in just 5 hours by Logging in or Becoming a subscriber.
Becoming a subscriber
Or look for another answer