1. State the difference between public and private sector alternatives with respect to the following characteristics. (a) Size of investment (b) Life of project (c) Funding (d) MARR
2. Indicate whether the following characteristics are primarily associated with public sector or private sector projects. (a) Profits (b) Taxes (c) Disbenefits (d) Infinite life (e) User fees (f) Corporate bonds
Identify each cash flow as a benefit, disbene fit, or cost.
(a) $500,000 annual income from tourism created by a freshwater reservoir
(b) $700,000 per year maintenance by container ship port authority
(c) Expenditure of $45 million for tunnel construction on an interstate highway
(d) Elimination of $ 1.3 million in salaries for county residents based on reduced international trade
(e) Reduction of $375,000 per year in car accident repairs because of improved lighting
(f) $700,000 per year loss of revenue by farmers because of highway right-ofway purchases
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