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February 6, 2019
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A local government is considering promoting tourism in the city. It will cost $5,

A local government is considering promoting tourism in the city. It will cost $5,000 to develop the plan. The anticipated annual benefits and costs are as follows: Annual benefits: Increased local income and tax collections $117,400 Annual support service: parking lot expansion, rest room, patrol car, and street repair $48,830 If the city government uses a discount rate of 6% and a study period of 5 years, is this tourism project justifiable according to the benefit cost analysis?

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