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A state-sponsored Forest Management Bureau is evaluating alternative routes for a new road into a formerly inaccessible region. Three mutually exclusive plans for routing the
A state-sponsored Forest Management Bureau is evaluating alternative routes for a new road into a formerly inaccessible region. Three mutually exclusive plans for routing the road provide different benefits, as indicated in table below. The roads are assumed to have an economic life of 30 years, and MARR is 9% per year. Which route should be selected according to the B-C ratio method? Assume that a roadway must be constructed Construction Costs $320,000 210,000 180,000 Annual Recreational Benefit $5,500 7,000 3,500 Annual Maintenance Annual Savings in Annual Timber Access Benefit $2,500 1,300 Route Fire Damage Cost $4,000 2,700 1,700 $12,000 7,000 5,000 400 Click the icon to view the interest and annuity table for discrete compounding when the MARR is 9% per year Perform the incremental B-C Analysis. Fill-in the table below. (Round to four decimal places.) Alternative Inc. B-C ratio Is the alternative acceptable
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