6) (20pts). A highway department is considering three alternative routes between two locations The rate of interest is 8%. Estimated useful life cost alternatives (present value Element Row Grading Structures Pavement Distance Year 40 40 40 20 $o ss0,000 $320,000 $420,000 $30,000 $220,000 $370,000 $40,000 $340,000 $280,000 13 miles 8 miles $40,000 $60,000 7.5 miles Annual Maintenance $1000/mile for all alternatives Total road user costs (annual) A-$261,000 B-$181,000 C-$170,000 Alternative 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% interests 0.10185 Answer the following questions: A) B) C) D) E) F) G) H) 1) J) What is the annual cost of alternative A? What is the annual cost of alternative B? What is the annual cost of alternative C? What is the saving or benefit of alternative B compare to A? What is the saving or benefit of alternative C compare to A? What is the saving or benefit of alternative C compare to B? Using B/C ratio which alternative is better B vs. A? Using B/C ratio which alternative is better B vs. C? Using B/C ratio which alternative is better C vs. A? Using B/C ratio which alternative is best