Conduct a Benefits-Cost Analysis on the following Highway Project using:

Initial Costs of Tunnel $5,000,000
Annual costs for operating/maintenance 150,000
Annual savings and benefits to travelers 250,000
Residual value of benefits after horizon 350,000
Useful life of investment 30 years Interest Rate 6%

a. B-C Ratio of Annual Worth
b. B-C Ratio of Future Worth
c. B-C Ratio of Present Worth

Suppose that the world price of steel is $100 a ton, india does not trade internationally, and the equilibrium price of steel in india is $60 a ton. suppose that india now begins to trade internationally. the price of steel in india the quantity of steel produced in india a. does not change; does not change b. falls; increases c. falls; decreases d. rises; decreases e. rises; increases the quantity of steel bought by india india steel. a. increases; exports b. decreases; imports c. decreases; exports d. does not change; neither imports nor exports e. increases; imports

Which of the following best explains why the demand for housing is more flexible than the supply? a. new housing developments are being constructed all the time. b. low interest rates for mortgages make buying a home very affordable. c. the increasing population always drives demand upwards. d. people can move more easily than producers can build new homes.

Decision alternatives should be identified before decision criteria are established. are limited to quantitative solutions are evaluated as a part of the problem definition stage. are best generated by brain-storming.