Answered step by step
Verified Expert Solution
Question
1 Approved Answer
6 - DC wants to build a new bypass between two major roads that will cut travel time for commuters. The road will cost $20,
6 - DC wants to build a new bypass between two major roads that will cut travel time for commuters. The road will cost $20, 000, 000 and save 50,000 people $100/year on gas. The road will need to be resurfaced every year at a cost of $500,000. The road is to be used for 20 years. The cost of money is 89. a) Determine B/C ratio Initial Cost $20, 000, 000 b ) Should DC buid the road? Explain. Resurfacing (every year) $500, 000 Avg # of road users / year 50,000 Avg time savings value / road user $100
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started