BCR = PV of Benifits / PV of Cost
PV of Benifits:
Year | CF | PVF @8% | Disc CF |
1 | $ 17,50,000.00 | 0.9259 | $ 16,20,370.37 |
2 | $ 17,50,000.00 | 0.8573 | $ 15,00,342.94 |
3 | $ 17,50,000.00 | 0.7938 | $ 13,89,206.42 |
4 | $ 17,50,000.00 | 0.7350 | $ 12,86,302.24 |
5 | $ 17,50,000.00 | 0.6806 | $ 11,91,020.59 |
6 | $ 17,50,000.00 | 0.6302 | $ 11,02,796.85 |
7 | $ 17,50,000.00 | 0.5835 | $ 10,21,108.19 |
8 | $ 17,50,000.00 | 0.5403 | $ 9,45,470.55 |
9 | $ 17,50,000.00 | 0.5002 | $ 8,75,435.69 |
10 | $ 17,50,000.00 | 0.4632 | $ 8,10,588.60 |
11 | $ 17,50,000.00 | 0.4289 | $ 7,50,545.00 |
12 | $ 17,50,000.00 | 0.3971 | $ 6,94,949.08 |
13 | $ 17,50,000.00 | 0.3677 | $ 6,43,471.37 |
14 | $ 17,50,000.00 | 0.3405 | $ 5,95,806.82 |
15 | $ 17,50,000.00 | 0.3152 | $ 5,51,672.98 |
16 | $ 17,50,000.00 | 0.2919 | $ 5,10,808.32 |
17 | $ 17,50,000.00 | 0.2703 | $ 4,72,970.67 |
18 | $ 17,50,000.00 | 0.2502 | $ 4,37,935.80 |
19 | $ 17,50,000.00 | 0.2317 | $ 4,05,496.11 |
20 | $ 17,50,000.00 | 0.2145 | $ 3,75,459.36 |
PV of Benefit | $ 1,71,81,757.96 |
PV of Cost = Initial Cost + PV Resurface Cost
PV of Resurface COst :
Year | CF | PVF @8% | Disc CF |
1 | $ 7,500.00 | 0.9259 | $ 6,944.44 |
2 | $ 7,500.00 | 0.8573 | $ 6,430.04 |
3 | $ 7,500.00 | 0.7938 | $ 5,953.74 |
4 | $ 7,500.00 | 0.7350 | $ 5,512.72 |
5 | $ 7,500.00 | 0.6806 | $ 5,104.37 |
6 | $ 7,500.00 | 0.6302 | $ 4,726.27 |
7 | $ 7,500.00 | 0.5835 | $ 4,376.18 |
8 | $ 7,500.00 | 0.5403 | $ 4,052.02 |
9 | $ 7,500.00 | 0.5002 | $ 3,751.87 |
10 | $ 7,500.00 | 0.4632 | $ 3,473.95 |
11 | $ 7,500.00 | 0.4289 | $ 3,216.62 |
12 | $ 7,500.00 | 0.3971 | $ 2,978.35 |
13 | $ 7,500.00 | 0.3677 | $ 2,757.73 |
14 | $ 7,500.00 | 0.3405 | $ 2,553.46 |
15 | $ 7,500.00 | 0.3152 | $ 2,364.31 |
16 | $ 7,500.00 | 0.2919 | $ 2,189.18 |
17 | $ 7,500.00 | 0.2703 | $ 2,027.02 |
18 | $ 7,500.00 | 0.2502 | $ 1,876.87 |
19 | $ 7,500.00 | 0.2317 | $ 1,737.84 |
20 | $ 7,500.00 | 0.2145 | $ 1,609.11 |
PV of Benefit | $ 73,636.11 |
PV of Cost = Initial Cost + PV Resurface Cost
= $ 14,000,000 + $ 73,636.11
= $ 14,073,636.11
BCR = PV of Benifits / PV of Cost
= $ 1,71,81,757.96 / $ 14,073,636.11
= 1.22
Option C is correct
Question 3 (1 point) Tucson wants to build a new bypass between two major roads that...