A city council is planning to build a new bridge across a creek. This will require an immediate expenditure of $50 000, and an estimated $2 000 a year in maintenance, but will save citizens an estimated $5 000 in travel costs every year over the next twenty years. If the council's MARR is 5%, what is the BCR for the project?
A)0.83
B)0.95
C)1.20
D)1.25
E)2.5

Question

Quizplus · Accepted Answer

The Answer of A city council is planning to build a new bridge across a creek. This will require an immediate expenditure of $50 000, and an estimated $2 000 a year in maintenance, but will save citizens an estimated $5 000 in travel costs every year over the next twenty years. If the council's MARR is 5%, what is the BCR for the project?
A)0.83
B)0.95
C)1.20
D)1.25
E)2.5

A City Council Is Planning to Build a New Bridge