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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

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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 road provide different benefits, as indicated in table below. The roads are assumed to have an economic life of 40 years, and MARR is 7% per year. Which route should be selected according to the B-C ratio method? Assume that a roadway must be constructed. Construction Annual Maintenance Annual Savings in Annual Recreational Annual Timber Route Costs Cost Fire Damage Benefit Access Benefit A $300,000 $4,300 $11,500 $6,000 $2,700 B 215,000 3,300 8,000 6,500 1,500 160,000 1,800 4,500 3,500 500 Click the icon to view the interest and annuity table for discrete compounding when the MARR is 7% 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? Capital Recovery Factor To Find A Given P AIP N 1 2 3 Discrete Compounding; i = 7% Single Payment Uniform Series Compound Compound Sinking Amount Present Amount Present Fund Factor Worth Factor Factor Worth Factor Factor To Find F To Find P To Find F To Find P To Find A Given P Given F Given A Given A Given F FIP PIF FIA PIA AIF 1.0700 0.9346 1.0000 0.9346 1.0000 1.1449 0.8734 2.0700 1.8080 0.4831 1.2250 0.8163 3.2149 2.6243 0.3111 1.3108 0.7629 4.4399 3.3872 0.2252 1.4026 0.7130 5.7507 4.1002 0.1739 1.5007 0.6663 7.1533 4.7665 0.1398 1.6058 0.6227 8.6540 5.3893 0.1156 1.7182 0.5820 10.2598 5.9713 0.0975 1.8385 0.5439 11.9780 6.5152 0.0835 1.9672 0.5083 13.8164 7.0236 0.0724 2.1049 0.4751 15.7836 7.4987 0.0634 2.2522 0.4440 17.8885 7.9427 0.0559 2.4098 0.4150 20.1406 8.3577 0.0497 4 5 6 7 1.0700 0.5531 0.3811 0.2952 0.2439 0.2098 0.1856 0.1675 0.1535 0.1424 0.1334 0.1259 0.1197 8 9 10 11 12 13 70 nozo PRO O ZARE AAAA 10 11 12 13 14 15 16 17 18 19 20 1.9672 2.1049 2.2522 2.4098 2.5785 2.7590 2.9522 3.1588 3.3799 3.6165 3.8697 4.1406 4.4304 4.7405 5.0724 5.4274 7.6123 10.6766 14.9745 21.0025 29.4570 0.5083 0.4751 0.4440 0.4150 0.3878 0.3624 0.3387 0.3166 0.2959 0.2765 0.2584 0.2415 0.2257 0.2109 0.1971 0.1842 0.1314 0.0937 0.0668 0.0476 0.0339 13.8164 15.7836 17.8885 20.1406 22.5505 25.1290 27.8881 30.8402 33.9990 37.3790 40.9955 44.8652 49.0057 53.4361 58.1767 63.2490 94.4608 138.2369 199.6351 285.7493 406.5289 7.0236 7.4987 7.9427 8.3577 8.7455 9.1079 9.4466 9.7632 10.0591 10.3356 10.5940 10.8355 11.0612 11.2722 11.4693 11.6536 12.4090 12.9477 13.3317 13.6055 13.8007 0.0724 0.0634 0.0559 0.0497 0.0443 0.0398 0.0359 0.0324 0.0294 0.0268 0.0244 0.0223 0.0204 0.0187 0.0172 0.0158 0.0106 0.0072 0.0050 0.0035 0.0025 0.1424 0.1334 0.1259 0.1197 0.1143 0.1098 0.1059 0.1024 0.0994 0.0968 0.0944 0.0923 0.0904 0.0887 0.0872 0.0858 0.0806 0.0772 0.0750 0.0735 0.0725 21 22 23 24 25 38 3 4 18 3 9 8 30 35 40 45 50

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