11-31. An analysis of accidents in a rural state indicates that widening a highway from 30 ft to 40 ft will decrease the annual accident rate from 1,250 to 710 per million vehicle-miles. Calculate the average daily number of vehicles that should use the highway to justify widening on the basis of the following estimates: (i) the average loss per accident is $1,200; (ii) the cost of widening is

$117,000 per mile; (iii) the useful life of the widened road is 25 years; (iv) annual maintenance costs are 3%

of the capital investment; and (v) MARR is 12% per year. (11.2)

(a) 78

(b) 63

(c) 34

(d) 59

(e) 27 A supermarket chain buys loaves of bread from its supplier at $0.50 per loaf. The chain is considering two options to bake its own bread.

Machine A Machine B Capital investment $8,000 $16,000 Useful life (years) 7 7 Annual fixed cost $2,000 $4,000 Variable cost per loaf $0.26 $0.16 Neither machine has a market value at the end of seven years, and MARR is 12% per year. Use this information to answer Problems 11-32, 11-33, and 11-34. Select the closest answer. (11.2)