A DOT is performing a benefit-cost analysis of a new highway using an analysis period of 40 years as part the required environmental impact assessment of the project. The section of highway is estimated to have a construction cost $210 million dollars. The public benefit in reduced travel time and economic development around the highway is estimated to be $19 million per year for the first 5 years, then decrease by 3% per year for the remainder of the 40 year analysis period as congestion grows and economic development slows. The public disbenefit is estimated to be $1.7 million dollars in year O due to additional congestion and pollution during construction, then average $160,000 per year over the 40-year project life in environmental costs due to increased runoff and vehicle emissions. Using an interest rate of 4%, determine the benefit-cost ratio for this project using public/government version of the B/C ratio. Express your answer to two decimal places.

A DOT is performing a benefit-cost analysis of a new highway using an analysis period of 40 years as part the required environmental impact assessment of the project. The section of highway is estimated to have a construction cost $230 million dollars. The public benefit in reduced travel time and economic development around the highway is estimated to be $12 million per year for the first 5 years, then decrease by 3% per year for the remainder of the 40 year analysis period as congestion grows and economic development slows. The public disbenefit is estimated to be $1.1 million dollars in year O due to additional congestion and pollution during construction, then average $110,000 per year over the 40-year project life in environmental costs due to increased runoff and vehicle emissions. Using an interest rate of 4%, determine the benefit- cost ratio for this project using public/government version of the B/C ratio. Express your answer to two decimal places.

A project being consider by a local government has the following estimated benefit – cost data - $1000 investment for the first 2 years and then recurring cost of $5000 for the coming 2 years and $8000 for year 5& 6 respectively. Also there are benefits of $20,000, $30,000, $ 30,000 and $20,000 starting from the third year. Consider the interest rate to be 10%, design an optimal solution to perform cost-benefit analysis and conclude if the project is suitable or not.

With interest at 10%, what is the benefit-cost ratio for this government project? Initial Cost Additional costs at the end of year 1 and year 2 Benefits at end of year 1 and year 2 Annual benefits at end of year 3 through year 2 Enter your answer as follow 12.34 $208,355 $23,720/year $0Ayear $91.825/year