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Solve clearly The transportation ministry has decided to construct a new highway to facilitate traffic between two cities. Three mutually exclusive alternative routes are being

Solve clearly

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The transportation ministry has decided to construct a new highway to facilitate traffic between two cities. Three mutually exclusive alternative routes are being studied using the Benefit-to-Cost ratio analysis with a discounted annual interest rate of 10%, as shown in the table below (assume 365 days/year]: Route X Y Z Investment 2,200,000 3,800,000 4,300,000 Annual Maintenance Cost 120,000 160,000 200,000 Collected toll per vehicle at the gates ($) 1.1 1.2 1.4 Travel time savings (minutes) per vehicle 4 5 7 Value of saved time per hour ($) 10 10 10 Estimated traffic volume per day 700 900 800 Estimated life (years) 15 20 20 (a) What is the annual equivalent of Costs for constructing routes X, Y, & Z? (b) What is the annual equivalent of Revenues for constructing routes X, Y, & Z? (c) What is the annual equivalent of Benefits for constructing routes X, Y, & Z? (d) What is the B/C ratio for constructing routes X, Y, & Z? (e) Using B/C analysis, which route is the best alternative

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