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four-lane highway east through Saddle Hill tunnel. The following data are available concerning the two routes: kilometre along either route. About 400,000 trips per year
four-lane highway east through Saddle Hill tunnel. The following data are available concerning the two routes: kilometre along either route. About 400,000 trips per year are expected on either route. Use this information to complete parts (a) through (d) below. Click the icon to view the table of compound interest factors for discrete compounding periods when i=10%. a. Which route should be built? Use only the data given. Use annual worth to make your decision. The incremental benefit is million pesos per year, and the incremental cost is million pesos per year, so the (Round to two decimal places as needed.) b. What important benefit of the Saddle Hill tunnel route has been left out of the analysis? A. The value of reduced disruption during the construction period B. The value of time saved for travellers C. The value of reduced vehicle operating costs D. The value of an increase in safety c. Do you need more information to determine if the benefit that has been left out of the analysis from part (b) would change the recommendation? Explain. A. Yes; a value to convert time to a monetary amount would be needed. B. No additional information is needed since the planning period is given. C. No additional information is needed since car speed along the routes is given. c. Do you need more information to determine if the benefit that has been left out of the analysis from part (b) would change the recommendation? Explain. A. Yes; a value to convert time to a monetary amount would be needed. B. No additional information is needed since the planning period is given. C. No additional information is needed since car speed along the routes is given. D. No additional information is needed since the operation cost for cars is given. E. Yes; the amount of time for the construction period would be needed. F. Yes; a value to convert distance to a monetary amount would be needed. d. How would the possibility of collecting a toll on the tunnel route affect your recommendation? A. A toll could possibly switch the recommendation. B. A toll would reduce the incremental benefit only, so it would not affect the recommendation. C. A toll would affect the analysis, but it would not affect the recommendation. D. The possibility of collecting a toll would not affect the analysis at all
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