Question
An improvement to the roadway is desired from Philmont Scout Ranch to Springer in northeastern New Mexico. Alternative N (for north) costs $2,600,000 initially and
An improvement to the roadway is desired from Philmont Scout Ranch to Springer in northeastern New Mexico. Alternative N (for north) costs $2,600,000 initially and $175,000/year thereafter. Route SA (for south, Alternative A) will cost $4,400,000 initially, and $92,000/year thereafter. Route SB is the same as SA with wider lanes and shoulders. It costs $5,600,000 initially with maintenance at $125,000/year. User costs considering time, operation, and safety are $610,000 for N, $415,000 for SA, and $305,000 for SB. The salvage values for N, SA, and SB after 20 years are 20% of initial cost, respectively.
a) Using a MARR of 9% and a 20-year study period calculate present worth using incremental B/C analysis. ( For SA-N and SB-SA)
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