Essay
A new public arena costs $60 million. The largest portion of this amount, $40 million, is for the land acquisition and major earthworks with infinite service life. The remaining $20 million is for the arena itself, which will be in operation for 20 years. Maintenance of the arena requires $2 million per year. Assuming a 5% MARR, what annual benefit is required for the benefit cost ratio to be greater than 1?
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