The benefit-cost ratio-mass-transit

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New buses for a mass-transit agency cost $10 million and are expected to last for 10 years with a $1 million salvage value. The buses cost $500,000 to operate and maintain each year. If the system is used for 624,318 trips per year, with the average cost to the rider of $1.50, but providing $4.00 in benefits, and the interest rate is 4% per year, the benefit-cost ratio using PW for the investment will be?

Reference no: EM13816124

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The benefit-cost ratio-mass-transit : New buses for a mass-transit agency cost $10 million and are expected to last for 10 years with a $1 million salvage value. The buses cost $500,000 to operate and maintain each year. If the system is used for 624,318 trips per year, with the average ..

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