Consider 4 options including light rail line length: A1, A2, A3, A4. An option

of design has the same 30-year service life and a value of

negligible recovery. Expected annual benefits from time savings

travel, accident prevention, reduction of emissions and costs

operation and maintenance of the railway network (as well as the investment costs

initials) are as follows (See Excel Prob 6 and all units are expressed in

millions of dollars).

Knowing that these are mutually exclusive options, what would be the best option to

a 5% interest rate? Using the incremental investment BCR, show the

sequence of calculations needed to get the best results.

You can perform your calculations in Excel, but show your answers and large

steps of your approach in your working document.

\begin{tabular}{|rrrr} \hline Options & investment cost & Annual benefits & Operating and maintenance costs \\ \hline A1 & 700$ & 80$ & 20$ \\ \hline A2 & 950$ & 120$ & 30$ \\ \hline A3 & 1,300$ & 160$ & 40$ \\ \hline A4 & 2,000$ & 210$ & 50$ \\ \hline \end{tabular}