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A new suburban development project is being planned to the west of Monterrey, Mexico. There is currently a two-lane road from the site of the

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A new suburban development project is being planned to the west of Monterrey, Mexico. There is currently a two-lane road from the site of the development along the base of the mountain Cerro de la Silla (Saddle Hill). The new development will require additional road capacity. Two alternatives are being considered. The rst is to upgrade the existing road to four wide modern lanes. The second is to build a new four-lane highway east through Saddle Hill tunnel. The following data are available concerning the two routes: Route Distance First Cost (pesos) Operating and Maintenance Costs per Year (pesos) Base of mountain 20 km 212 million 900,000 1,400,000 Tunnel 10 km 458 million The planning period is 40 years for both routes. The MARR is 10 percent. Cars will travel at 100 kilometres per hour along either route. Operating cost for the cars is expected to be about 2.50 pesos per kilometre along either route. About 400,000 trips per year are expected on either route. Use this information to complete parts (a) through (0) below. 5 Click the ioon to view the table of compound interest factors for discrete compounding periods when i=10%. a. Which route should be built? Use only the data given. Use annual worth to make your decision. The incremental benet is 10.00' million pesos peryear, and the incremental cost is 28.72' million pesos peryear, so the base route is preferable. (Round to two decimal places as needed.) Single Payment Uniform Series Series Arithmetic Compound Present Sinking Uniform Capital Present Gradient Amount Worth Fund Series Recovery Worth Series Factor Factor Factor Factor Factor Factor Factor N (F/P,i,N) (P/F,i,N) (A/F,i,N) (F/A,i,N) (A/P,i,N) (P/A,i,N) (A/G,i,N) 1.1000 0.90909 1.00000 1.0000 1.1000 0.90909 0.00000 1.2100 0.82645 0.47619 2.1000 0.57619 1.7355 0.47619 1.3310 0.75131 0.30211 3.3100 0.40211 2.4869 0.93656 1.4641 0.68301 0.21547 4.6410 0.31547 3.1699 1.3812 1.6105 0.62092 0. 16380 6.1051 0.26380 3.7908 1.8101 1.7716 0.56447 0. 12961 7.7156 0.22961 4.3553 2.2236 1.9487 0.51316 0.10541 9.4872 0.20541 4.8684 2.6216 2.1436 0.46651 0.08744 11.436 0.18744 5.3349 3.0045 2.3579 0.42410 0.07364 13.579 0.17364 5.7590 3.3724 10 2.5937 0.38554 0.06275 15.937 0. 16275 6.1446 3.7255 11 2.8531 0.35049 0.05396 18.531 0. 15396 6.4951 4.0641 12 3.1384 0.31863 0.04676 21.384 0.14676 6.8137 4.3884 13 3.4523 0.28966 0.04078 24.523 0. 14078 7.1034 4.6988 14 3.7975 0.26333 0.03575 27.975 0.13575 7.3667 4.9955 15 4.1772 0.23939 0.03147 31.772 0.13147 7.6061 5.2789 16 4.5950 0.21763 0.02782 35.950 0.12782 7.8237 5.5493

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