10-25. Extended Learning Exercise The Fox River is bordered on the east by Illinois Route 25 and on the west by Illinois Route 31. Along one stretch of the river, there is a distance of 16 miles between adjacent crossings. An additional crossing in this area has been proposed, and three alternative bridge designs are under consideration. Two of the designs have 25-year useful lives, and the third has a useful life of 35 years. Each bridge must be resurfaced periodically, and the roadbed of each bridge will be replaced at the end of its useful life, at a cost significantly less than initial construction costs. The annual benefits of each design differ on the basis of disruption to normal traffic flow along Routes 25 and 31. Given the information in Table P10-25, use the B–C ratio method to determine which bridge design should be selected. Assume that the selected design will be used indefinitely, and use a MARR of 10% per year. (10.9)

The city council of Morristown is considering the purchase of one new fire truck. The options are Truck X and Truck Y. The appropriate financial data are as follows: Truck X Truck Y Capital investment $50,000 $64,000 Maintenance cost per year $6,000 $5,000 Useful life 6 years 6 years Reduction in fire damage $20,000 $22,000 per year The purchase is to be financed by money borrowed at 12% per year. Use this information to answer problems 10-26 and 10-27.