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Eyup Municipality is considering opening a new light metro rail line. The new line can be constructed at a cost of $9 M, and will have an estimated annual maintenance cost of $75,000. The annual savings from reduced accidents will sum up to $123,000. Besides, the municipality estimates the annual convenience benefits for residents on the route to reach $700,000. Yet, the annual disbenefit caused by the increase in travelling times by car is estimated to be $144,000 annualy. Find the B–C ratio, using modified version and treating disbenefits as costs, using a MARR of 7% and a study period of 13 years, to determine whether the new line should be constructed.

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Financial Management, Finance

Category:- Financial Management
Reference No.:- M92781788

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