Evaluate capital projects

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Reference no: EM131810261

How many statistical lives per year must be saved to justify a new bypass around a large city that will cost $12.5M to construct and $135K per year to maintain? Time savings for motorists using the bypass are valued at $100K annually. The city uses 7% to evaluate capital projects, and the bypass is expected to handle traffic for 40 years.

Reference no: EM131810261

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