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#11) A proposed change to highway design standards is expected to reduce the number of vehicle crashes by 9,200 per year, but will have an
#11) A proposed change to highway design standards is expected to reduce the number of vehicle crashes by 9,200 per year, but will have an initial cost of $150,000,000 and annual costs of $25,000,000. Assume no terminal value at the end of 8 years. Given an interest rate of 10% and a study period of 8 years, what is the average cost of each vehicle crash in order to have the benefit-to-cost ratio equal to 1.0? a. $9,103 b. $6,767 c. $8,733 d. $5,773
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