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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 ..........

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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 50 years, and MARR is 10% per year, which route should be selected according to the B-C ratio method? Assume that a roadway must be constructed Construction Costs S295,000 215,000 170,000 Annual Recreational Benefit $5,500 6,500 3,500 Annual Maintenance Annual Savings in Annual Timber Route Fire Damage Cost $4,800 3,000 2,000 Access Benefit $2,900 1,600 $11,500 7,000 4,500 700 Click the icon to view the interest and annuity table for discrete compounding when the MARR is 10% per year Perform the incremental B-C Analysis. Fill-in the table below. (Round to four decimal places.) Alternative Inc. B-C ratio 0.4544 1.1555 0.4864 Is the alternative acceptable? Yes 0 From an incremental analysis, route B is the "least objectionable" alternative 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 50 years, and MARR is 10% per year, which route should be selected according to the B-C ratio method? Assume that a roadway must be constructed Construction Costs S295,000 215,000 170,000 Annual Recreational Benefit $5,500 6,500 3,500 Annual Maintenance Annual Savings in Annual Timber Route Fire Damage Cost $4,800 3,000 2,000 Access Benefit $2,900 1,600 $11,500 7,000 4,500 700 Click the icon to view the interest and annuity table for discrete compounding when the MARR is 10% per year Perform the incremental B-C Analysis. Fill-in the table below. (Round to four decimal places.) Alternative Inc. B-C ratio 0.4544 1.1555 0.4864 Is the alternative acceptable? Yes 0 From an incremental analysis, route B is the "least objectionable" alternative

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