The Tennessee Department of Transportation (TDOT) is considering four alternate alignments for I-812 in Decatur County. The cost data and road length for each alignment is shown in the accompanying table. The anticipated traffic volume on I- 812 is 750,000 vehicles per year. The road user cost for the people in Decatur County is estimated to be $0.60 per mile. The useful life of I-812 is twenty-five years. Using a conventional Benefit/Cost ratio analysis and a MARR equal to 8% per year, determine which alternative should be selected. Compute all benefit/cost ratios to two decimal places.

The Tennessee Department of Transportation (TDOT) is considering four alternate alignments for I-812 in Decatur County. The cost data and road length for each alignment is shown in the accompanying table. The anticipated traffic volume on I- 812 is 750,000 vehicles per year. The road user cost for the people in Decatur County is estimated to be $0.60 per mile. The useful life of 1-812 is twenty-five years. Using a conventional Benefit/Cost ratio analysis and a MARR equal to 8% per year, determine which alternative should be selected. Compute all benefit/cost ratios to two decimal places. Alternatives . B D Initial Cost $195,000,000 $202,000,000 $194,000,000 $200,500,000 Annual Cost $260,000 $270,000 $375,000 $425,000 per year Salvage Value $170,000 $220,000 $130,000 $175,000 Road Length 23.2 22.0 22.5 21.7 miles (50 points) 1