The cost of grading and spreading gravel

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The cost of grading and spreading gravel on a short rural road is expected to be $ 300,000. The road will have to be maintained at a cost of $ 25,000 per year. Even though the new road is not very smooth, it allows access to an area that previously could only be reached with off road vehicles. The improved accessibility has led to a 150% increase in the property value of a property was $ 900,000, calculate the B/C ratio using an interest rate of 6% per year and a 20-year study period.

Reference no: EM13982657

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