Managerial Economics: Applications, Strategy and Tactics 12th Edition by James McGuigan, Charles Moyer, Frederick Harris

Exercise 8

Suppose that the fairgrounds is unable to obtain a license to operate a dog-racing\ track. Assume that construction costs are reduced by 15 percent if a dog-racing track is not built. Recompute the benefit-cost ratio under this assumption (also exclude employment and convention facility benefits). How does this calculation affect the desirability of the proposed redevelopment project