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construction accounting problem The State Highway Department is...

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Accounting

construction accounting problem

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The State Highway Department is considering a bypass loop that is expected to save motorists $820,000 per year in gasoline and other automobile-related expenses. However, local businesses will experience revenue losses estimated to be $135,000 each year. The cost of the loop will be $9,000,000. Calculate the conventional BCR ratio based on AW using an interest rate of 6% per year and a 20 -year project period. 1.05 justified 0.87 justified 0.87 not justified 1.22 justified The State Highway Department is considering a bypass loop that is expected to save motorists $820,000 per year in gasoline and other automobile-related expenses. However, local businesses will experience revenue losses estimated to be $135,000 each year. The cost of the loop will be $9,000,000. Calculate the conventional BCR ratio based on AW using an interest rate of 6% per year and a 20 -year project period. 1.05 justified 0.87 justified 0.87 not justified 1.22 justified

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