Question
An improvement to the roadway is desired from Philmont Scout Ranch to Springer in northeastern New Mexico. Alternative N (for north) costs $2,300,000 initially and
An improvement to the roadway is desired from Philmont Scout Ranch to Springer in northeastern New Mexico. Alternative N (for north) costs $2,300,000 initially and $175,000/year thereafter. Route SA (for south, Alternative A) will cost $4,100,000 initially, and $83,000/year thereafter. Route SB is the same as SA with wider lanes and shoulders. It costs $5,400,000 initially with maintenance at $110,000/year. User costs considering time, operation, and safety are $600,000 for N, $405,000 for SA, and $320,000 for SB. The salvage values for N, SA, and SB after 20 years are 20% of initial cost, respectively.Part A) Using a MARR of 6% and a 20-year study period calculate present worth using incremental B/C analysis. B/C for N, SA, SB.. Part B) Using a MARR of 6 percent and a 20-year study period calculate present worth using Use a B - C analysis. B-C for N, SA, SB.. Part C) Calculate the present worth using an interest rate of 0 percent for 20 yr period. Use B-C analysis. B-C for N, SA, SB. (solve using data interest tables)
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