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The town of liIiakwood, Indiana, is considering turning an old railroad bed into a walking and biking tra as part of a Rails to Trails

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The town of liIiakwood, Indiana, is considering turning an old railroad bed into a walking and biking tra as part of a "Rails to Trails\" initiative. This trail wl be called the DLine Trail. You have been asked to calculate the expected expenses to tire town government if the trail is built. In addition, you are tn calculate the projected economic costs of this project, which will he used for a costbenefit analysis of the proposal. The accounting domain for the cost-benefit analysis will be the state of Indiana. No taxes would be owed on purchases, except where noted below. This trail would extend a total of 10 miles [52,800 linear feet], running from the west side of town, through downtown, to the east side. Although the railroad tracks have been removed, some grading work would need to be done to make the trail suitable for paving. This work will require rental of machinery from one of a number of local rental shops, at a cost of $5.00 per linear foot of trail. The Trail would consist of asphait paving that is 10' wide. The current cost for asphalt from local firms is $5.50 per square foot. However, due to the large amount of asphalt needed for the project, it is projected that the town's purchase would lead to the price increasing to $0.90 per square foot, and that the town would have to pay this higher price. Smith 3: Co. Pavers, a local firm, would be commissioned to create '30 special street name pavers to be used where the trail intersects with existing streets. Each paver will cost the town $11, which is a $2.00 markup above Smith St Cofs costs. Trees, bushes, and other landscaping items will be procured from Bob's Nursery, one of many nurseries in the local area. The total bill for these items is projected to be $25,000 per mile of trail, which includes a recently enacted state levied tax on all landscaping purchases of $1,000 per mile. There will be a number of other features included in several locations along the trail. These include: - humam'pet drinking fountains 5 per me of trail (will be donated to the town by the l[Ziakwood chapter of the Moose Club, who have raised $4,000 for this purpose to order them from an out of state vendor) . parl-t benches 3 per mile of trail (ordered from an out of state vendor at a cost of $330 each, which includes $30 in state sales taxes to tile other state] . solarpowered LED lights - 40 [special ordered from Dakwood Hardware at a cost of $355 each, which is $35 above their cost] ' uash receptacles 35 (special ordered from Dakwood Hardware at a cost of $250 each, which is $2? above their cost)

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