The Fox River is bordered on the east by Illinois Route 25 and on the west by Illinois Route 31. Along one stretch of the?river, there is a distance of 16 miles between adjacent crossings. An additional crossing in this area has been?proposed, and three alternative bridge designs are under consideration. Each bridge must be resurfaced?periodically, and the roadbed of each bridge will be replaced at the end of its useful?life, at a cost significantly less than initial construction costs. The annual benefits of each design differ on the basis of disruption to normal traffic flow along Routes 25 and 31. Given the information in table?below, use the?B-C ratio method to determine which bridge design should be selected. Assume that the selected design will be used?indefinitely, and use a MARR of 10?% per year.

The Fox River is bordered on the east by Illinois Route 25 and on the west by Illinois Route 31. Along one stretch of the river, there is a distance of 16 miles between adjacent crossings. An additional crossing in this area has been proposed, and three alternative bridge designs are under consideration. Each bridge must be resurfaced periodically, and the roadbed of each bridge will be replaced at the end of its useful life, at a cost significantly less than initial construction costs. The annual benefits of each design differ on the basis of disruption to normal traffic flow along Routes 25 and 31. Given the information in table below, use the B-C ratio method to determine which bridge design should be selected. Assume that the selected design will be used indefinitely, and use a MARR of 10% per year. i Click the icon to view the bridge design information. Perform the incremental B-C Analysis. Fill-in the table below. (Round to two decimal places.) Alternative Inc. B-C ratio Is the alternative acceptable? 1.33 Yes B 1.03 Yes A 0.93 No The bridge design B should be selected.H More Info - X Bridge Design A B C Capital investment $17,000,000 $14,000,000 $12,500,000 Annual maintenance cost* 12.000 17.500 20,000 Resurface (every fifth year)* 40,000 40,000 Resurface (every seventh year)* 40,000 Bridge replacement cost 3,000,000 3,500,000 3,750,000 Annual benefit 2,150,000 1,900,000 1,750,000 Useful life of bridge (years)** 35 25 25 Cost not incurred in last year of bridge's useful life. ** Applies to roadbed only; structural portion of bridge has indefinite useful life. Print Done