Answered step by step
Verified Expert Solution
Question
1 Approved Answer
A relocation of a short stretch of rural highway feeding into Route 390 northwest of Dallas is to be made to accommodate new growth. The
A relocation of a short stretch of rural highway feeding into Route 390 northwest of Dallas is to be made to accommodate new growth. The existing road is now unsafe, and improving it is not an alternative Altemate new route locations are designated as East and West. The initial investment by government highway agencies will be $3,950,000 for East and $5,400,000 for West. Annual highway maintenance costs wil be120,000 for East and $90,000 forthe shorter location West. Relevant annual road user costs, considering vehicle operation, tme en route, fuel, safety, mileage, and so on, are estimated as $880,000 for East and only $730,000 for west. Assume a 20-year service life and 1-7 %. Click here to acoess the TVM Factor Table Calculator What is the present worth of the benefits and costs of route West over route East? pw benefits of route west over route East: PW costs of route West over route East:$ Carry all interim calculations to 5 decimal places and then round your final answer to the nearest dollar. The tolerance is +50. Using incremental B/C ratio analysis, which altenative should be selected? Compute the appropriate B/C ratios) and decide whether East or West should be constructed. Please show the values used to make your decision: AB/AC Carry all interim calculations to 5 decimal places and then round your final answer to 2 decimal places. The tolerance is 0.02. B C Carry all interim calculations to 5 decimal places and then round your final answer to the nearest dollar. The tolerance is 50. A relocation of a short stretch of rural highway feeding into Route 390 northwest of Dallas is to be made to accommodate new growth. The existing road is now unsafe, and improving it is not an alternative Altemate new route locations are designated as East and West. The initial investment by government highway agencies will be $3,950,000 for East and $5,400,000 for West. Annual highway maintenance costs wil be120,000 for East and $90,000 forthe shorter location West. Relevant annual road user costs, considering vehicle operation, tme en route, fuel, safety, mileage, and so on, are estimated as $880,000 for East and only $730,000 for west. Assume a 20-year service life and 1-7 %. Click here to acoess the TVM Factor Table Calculator What is the present worth of the benefits and costs of route West over route East? pw benefits of route west over route East: PW costs of route West over route East:$ Carry all interim calculations to 5 decimal places and then round your final answer to the nearest dollar. The tolerance is +50. Using incremental B/C ratio analysis, which altenative should be selected? Compute the appropriate B/C ratios) and decide whether East or West should be constructed. Please show the values used to make your decision: AB/AC Carry all interim calculations to 5 decimal places and then round your final answer to 2 decimal places. The tolerance is 0.02. B C Carry all interim calculations to 5 decimal places and then round your final answer to the nearest dollar. The tolerance is 50
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