Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

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

image text in transcribedThe 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

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Auditing Markets Products And Marketing

Authors: David Parmerlee

1st Edition

0658001337, 978-0658001338

More Books

Students also viewed these Accounting questions

Question

Enhance the basic quality of your voice.

Answered: 1 week ago

Question

Describe the features of and process used by a writing team.

Answered: 1 week ago