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An improvement to the roadway is desired from Philmont Scout Ranch to Springer in northeastern New Mexico. Alternative N (for north) costs dollar 2.400.000 initially
An improvement to the roadway is desired from Philmont Scout Ranch to Springer in northeastern New Mexico. Alternative N (for north) costs dollar 2.400.000 initially and dollar155.000/year thereafter. Route SA (for south. Alternative A) will cost dollar4.200.000 initially, and dollar 88.000/year thereafter. Route SB is the same as SA with wider lanes and shoulders. It costs dollar 5.200.000 initially with maintenance at dollar 125.000/year. User costs considering time, operation, and safety are dollar 625.000 for N. dollar 410.000 for SA. and dollar 310.000 for SB. The salvage values for N, SA. and SB after 20 years are 20 percent of initial cost, respectively. Using a MARR of 7 percent and a 20-year study period, which should be constructed? Use an incremental B/C analysis. Use a EC analysis. Which route is preferred if 0 percent interest is used
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