Wha t is the bcr of the project

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Reference no: EM131374581

Several new big-box stores have created additional congestion at an intersection in north Buffalo, Xew York. City engineers have recommended the addition of a turn lane, a computer-controlled signal, and sidewalks, at an estimated cost of $1.5 million. The annual maintenance costs at the new intersection will be S8000, but users will save S50 000 per year due to reduced waiting time. In addition, accidents are expected to decline, representing a property and medical savings of $175 000 per year. The renovation is expected to handle traffic adequately over a 10-year period. The city uses a MARR of 5%.

(a) Wha t is the BCR of this project?

(b) Wha t is the BCRAI of the project?

Reference no: EM131374581

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