4. The Louisiana Department of Transportation and Development (LaDOTD) in 2009 approved the feasibility analysis for upgrading 6 miles of US-167 South starting at the intersection with US-80 (California Avenue). An existing two-lane highway between is to be converted to a four-lane divided freeway. The proposed new freeway is projected to average 25,000 vehicles per day over the next 20 years. Truck volumes represent 6.25% of the total traffic. Annual maintenance on the existing highway is $1875 per lane mile. The existing accident rate is 5.725 per million vehicle miles (MVM). Capital improvement investment money can be secured at 6.25%. Which alternative is preferred (use benefit/cost ratio analysis)? Plan 1: Add two adjacent lanes for $562,500 per mile. This will reduce auto travel time by 2.5 minutes and truck travel time by 1.25 minutes. It will reduce the accident rate to 3.125 per MVM. Annual maintenance is estimated to be $1560 per lane mile. Plan 2: Make grade improvements while adding two adjacent lanes at a cost of $812,500 per mile. This would reduce auto and truck travel time by 3.75 minutes each. The accident rate is estimated to be 3.10 per MVM. Annual maintenance is estimated to be $1250 per lane mile. Plan 3: Construct a new freeway on new alignment at a cost of $1,000,000 per mile. This would reduce auto travel time by 6.25 minutes and truck travel time by 5 minutes. Plan 3 is 0.5 miles longer than the others. The estimated accident rate is 3.00 per MVM. Annual maintenance is estimated to be $1250 per lane mile. Plan 3 abandons the existing highway with no salvage value. Additional data: Operating cost-autos: 15 par mila Workbook last saved: 6m ago Operating cost-trucks: 22.5 per mile Time saving-autos: 3.75 per vehicle minute Time saving-trucks: 18.75 per vehicle minute Average accident cost: $1500