A Local Government Is Considering Promoting Tourism in the City

question 1

Essay

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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Definitions:

Thermodynamics

The branch of physics that deals with the relationships between heat and other forms of energy, and the laws governing the conversion of heat into work.

Energy

The capacity to do work or produce change, existing in various forms such as kinetic, potential, thermal, and chemical energy.

Parts Per Trillion

A unit of measurement used to denote extremely small concentrations of a substance in another, equivalent to one part in 10^12 parts.

Nuclear Change

Alterations at the atomic nucleus level, including nuclear reactions such as fission, fusion, and radioactive decay, releasing significant amounts of energy.