Several residents of the town would prefer to use the $25 million dollars curren

Question

Several residents of the town would prefer to use the $25 million dollars currently set aside for the bike lane project to construct a new soccer complex for the local recreational youth league. That project is estimated to cost $18 million. Assume that the soccer complex will serve approximately 10,000 people per year, while roughly 15,000 people will use the bike lanes. Which project should we do?

If we wanted to calculate the actual monetary benefits of the soccer people and bike people respectively, what would be a good way to do it?

Explanation / Answer

The best way to calculate the actual monetary benefits if to calculate the benefits received per people affected.

So, for soccer complex = 18 million / 10000 = 1800

For bike lane = 25 million / 15000 = 1666.66

So, the cost per person is high for soccer complex and low.for bike lane. So, ideally the bike lane should be constructed.

Related Questions

Navigate

• Browse (All)
• Browse S
• Subjects

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.