). (20 pts.) A highway department is considen rate of interest is 8% way department is th e routes between two ve routes between two locations. The Estimated Useful life Cost Alternatives (present value) Element Year Row C SO $40,000 $60,000 Grading $50,000 $420,000 Structures $30,000 $320,000 $220,000 $340,000 $370,000 Pavement $40,000 $280,000 Distance 13 miles 8 miles 7.5 miles Annual Maintenance $1000/mile for all alternatives Total Road user costs (annual) A- $261,000 Alternative B- $ 181,000 C- $ 170,000 By use of the benefit-cost method determine which of the three alternatives should be recommended, if any. CRF-(A/P) for 40 years, 8% interest -0.08386 20 years, 8% interest -0.10185 Answer the following questions: a) What is the annual cost of alternative A? b) What is the annual cost of alternative B? c) What is the annual cost of alternative C? d) What is the saving or benefit of alternative B compare to A? e) What is the saving or benefit of alternative C compare to A? f) What is the saving or benefit of alternative C compare to B? g) Using B/C ratio which alternative is better B vs A? h) Using B/C ratio which alternative is better B vs C? i) Using B/C ratio which alternative is better C vs A? j) Using B/C ratio which alternative is best