Answered step by step
Verified Expert Solution
Question
1 Approved Answer
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 Annual Maintenance Annual Savings in Annual Recreation Annual Timber Route Cost $4,500 3,300 2.000 Fire Damage $12,000 7,000 4,000 Benefit 56,000 6,500 2.500 Costs Access Benefit $340,000 52,700 210,000 150,000 1,400 400 lick the icon to view the interest and annuity table for discrete compounding when the MARR is g% per year. Perforrm the incremental B-C Analysis. Fill-in the table below. (Round to four decimal places.)
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