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The transportation ministry has decided to construct a new highway to facilitate traffic between two cities. Two mutually exclusive alternative routes are being studied using
The transportation ministry has decided to construct a new highway to facilitate traffic between two cities. Two mutually exclusive alternative routes are being studied using the Benefit-to-Cost ratio analysis with annual %, as shown in the table below. MARR of MARR12% X Y 3,800,000 4.300,000 210,000 160.000 S1.2 $1.4 Route Initial Cost ($) Maintenance Cost ($) per year Collected toll per vehicle at the gates Benefits (travel time savings per vehicle Value of saved time per vehicle Estimated traffic volume (no. of vehicles per day in each year) Estimated life (years) 5 min 7 min $10/hour $10/hour 900 800 20 20 Which alternative do you recommend using BCR Method? (Show detailed Calculations)
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