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In: Economics

The Construction cost of the bypass is 20 million and 500,000 would be required each year...

The Construction cost of the bypass is 20 million and 500,000 would be required each year for annual maintenance. The annual benefits to the public have been estimated to be 2 million. If the study period is 50 years and the government interest rates is 8% per year, a.) Should the bypass be constructed? B.)What impact does a social interest rate of 4% per year have on the B-C ratio of the project

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Rahul Sunny answered 1 year ago
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