The City Engineering Department of a city submitted a proposal for improving the downtown area. They propose banning vehicular traffic on the main street and turning this street into a pedestrian mall with tree plantings and other beautification features. This proposal will involve actual costs of Php 401,600,000 and, according to its proponents, the proposal will produce benefits to the town as follows: Benefits: Increased sales tax revenue: Php 27,800,000 per year Increased real estate property taxes: Php 14,350,000 per year Benefits due to decreased air pollution: Php 5,100,000 per year Quality of life improvements to users: Php 4,300,000 per year a. Compute the B–C ratio of this plan based on a MARR of 10% per year and an infinite life for the project using AW.
ECONOMICS (Upvote will be given. Please TYPE the complete solutions. No long explanation needed. Use the "Interest and Annuity Tables for Discrete Compounding")
The City Engineering Department of a city submitted a proposal for improving the downtown area. They propose banning vehicular traffic on the main street and turning this street into a pedestrian mall with tree plantings and other beautification features. This proposal will involve actual costs of Php 401,600,000 and, according to its proponents, the proposal will produce benefits to the town as follows:
Benefits:
Increased sales tax revenue: Php 27,800,000 per year
Increased real estate property taxes: Php 14,350,000 per year
Benefits due to decreased air pollution: Php 5,100,000 per year
Quality of life improvements to users: Php 4,300,000 per year
a. Compute the B–C ratio of this plan based on a MARR of 10% per year and an infinite life for the project using AW.
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