Question
A city engineer is testing four different countermeasure alternatives that can potentially reduce the number and severity of crashes at one very busy intersection within
A city engineer is testing four different countermeasure alternatives that can potentially reduce the number and severity of crashes at one very busy intersection within the city limits. The estimated costs and benefits (in the form of reducing total crashes) are given below for each countermeasure. Assuming that all countermeasures have a 10-year life with zero salvage value, determine which one should be selected using a 15% discount rate per year and the B/C method. Item Alternative Countermeasure 1 2 3 4 Installation cost, $ 15,000 19,000 25,000 33,000 Annual Maintenance & operation cost, $/year 10,000 12,000 9,000 11,000 Benefits, $/year 15,000 20,000 19,000 22,000
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