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A do-nothing and two mutually exclusive alternatives are being considered for reducing traffic congestion. User benefits come from reduced congestion once the project is complete,
A do-nothing and two mutually exclusive alternatives are being considered for reducing traffic congestion. User benefits come from reduced congestion once the project is complete, while user disbenefits are due to increased congestion during construction. The interest rate is 8%, and the life of each alternative is 15 years. Use the public/government version of the B/C ratio to decide which alternative should be chosen.
(You are required to write BC ratio. If you choose do-nothing alternative, write 0 in the blank)
Alternative | A | B | |
User benefits ($M/yr) | 2.1 | 2.6 | |
User disbenefits ($M) | 1.2 | 2.1 | |
First cost ($M) | 6.9 | 9.9 | |
Operations and maintenance ($M/yr) | 0.75 | 0.825 |
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