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Fundamentals of Engineering Economics 3rd Edition by Chan Park
Edition 3ISBN: 978-0132775427Fundamentals of Engineering Economics 3rd Edition by Chan Park
Edition 3ISBN: 978-0132775427 Exercise 1
A local government is considering promoting tourism in the city. It will cost $5,000 to develop a plan. The anticipated annual benefits and costs are as follows:
Annual benefits: Increased local income and tax collections $117,400
Annual support service: Parking lot expansion, rest room, patrol car, and street repair $48,830
If the city government uses a discount rate of 6% and a study period of five years, is this tourism project justifiable according to the benefit-cost analysis?
Annual benefits: Increased local income and tax collections $117,400
Annual support service: Parking lot expansion, rest room, patrol car, and street repair $48,830
If the city government uses a discount rate of 6% and a study period of five years, is this tourism project justifiable according to the benefit-cost analysis?
Explanation
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Given information:
• Initial investment...
Fundamentals of Engineering Economics 3rd Edition by Chan Park
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