What is the b-c ratio for the project

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Reference no: EM13157321

As part of the rehabilitation of the downtown area of the southern U.S. city, the Park andRecreation Department is planning to develop the space below several overpasses intobasketball, handball, miniature golf, and tennis courts. The initial cost is expected to be$150,000 for improvements which are expected to have a 20-years life. Annual maintenancecosts are projected to be $12,000. The department expects 24,000 people per year to use thefacilities an average of 2 hours each. The value of the recreation has been conservatively set at$0.50 per hour. At a discount rate of 3% per year, what is the B/C ratio for the project?

Reference no: EM13157321

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