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6 - DC wants to build a new bypass between two major roads that will cut travel time for commuters. The road will cost $20,

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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

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