42. A highway is to be built connecting Maud and Bowlegs. Route A follows the old road and costs $4 million initially and $210,000/year thereafter. A new route, B, will cost $6 million initially and $180,000/year thereafter. Route C is an enhanced version of Route B with wider lanes, shoulders, and so on.

Route C will cost $9 million at fi rst, plus $260,000 per year to maintain. Benefi ts to the users, considering time, operation, and safety, are $500,000 per year for A, $850,000 per year for B, and $1,000,000 per year for C. Using a 7 percent interest rate, a 15-year study period, and a salvage value of 50 percent of fi rst cost, determine which road should be constructed.