Business Its Legal Ethical & Global Environment
10th Edition
ISBN: 9781305224414
Author: JENNINGS
Publisher: Cengage
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When red light cameras are installed at high-risk intersections, rear-end collisions go up, but all other types of accidents go down, including thoseinvolving pedestrians. Analysis of traffic accidents in a northwestern city revealed that the total number of collisions at photo-controlled intersections decreased from 33 per month to 18. At the same time, the number of traffic tickets issued for red light violations averaged 1100 per month at an average cost to violators of $85 per citation. The cost to install the basic camera system at selected intersections was $750,000. If the cost of a collision is estimated at $41,000 and traffic ticket costsare considered disbenefits, calculate the B/C ratio for the camera system. Use a discount rate of 0.5% per month and a 3-year study period.
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