Question

Use the following information for Section II. You are conducting a BCA of proposed public investment in a local park by adding a new picnic shelter. Use a 7% annual discount rate to calculate the values requested for #4-5 below using the stream of benefits and costs provided in this table.

What is the present value of the stream of net benefits from building the new picnic shelter at the park?

What is the benefit-cost ratio of this stream of benefits and costs?

Section II: Benefit-Cost Analysis (BCA) Use the following information for Section II. You are conducting a BCA of proposed pu

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Answer #1

Year Cash flows PVIF@7% 0$ 1 $ 2 $ 3 $ 4 $ 5 $ (1,500) 400 400 400 400 400 1.0000 0.9346 0.8734 0.8163 0.7629 0.7130 Discount

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