A city is trying to decide whether to build a parking garage. An engineering plan calculates that the building will cost $2 million with costs of $200,000 per year to operate. Our analysis of operating revenue determines that the garage will start to earn revenues of $500,000 per year in the second year. The city is interested in knowing whether this project will be profitable over the next eight years at 6%. The project's B/C ratio is closest to (a) 1 (b) 0.87 (c) 1.33 (d) 2.50

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A city is trying to decide whether to build a parking garage. An engineering plan calculates that the building will cost

$2

million with costs of

$200.000

per year to operate. Our analysis of operating revenue determines that the garage will start to earn revenues of

$500, 000

per year in the second year. The city is interested in knowing whether this project will be profitable over the next eight years at

6%

. The project's B/C ratio is closest to (a) 1 (b) 0.87 (c) 1.33 (d) 2.50

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