The state highway department is considering six routes for a new highway. Listed are the estimated construction costs, maintenance costs, and the user cost associated with each route. The life of the highway is expected to be 25 years with no salvage value. If the initial interest rate is 8%, which highway route is most desirable? a. Solve using incremental analysis. b. Solve using total investment analysis. Answer: A5 c. If the estimated costs are in constant dollars and the annual inflation rate is 8%, which route is favored? Answer: A6