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Two different routes are under consideration for a new highway: Long Route Short Route Distance 35 Miles 20 Miles Initial Cost $50 Million $80 Million
Two different routes are under consideration for a new highway: Long Route Short Route Distance 35 Miles 20 Miles Initial Cost $50 Million $80 Million Annual Maintenance Costs $200,000 $300,000 Both routes expect a traffic volume of 400,000 vehicles per year, these vehicles are assumed to operate at $0.25 per mile per year. Assuming a 40-year lifespan for both routes and an interest rate of 10%, determine which route to be selected based on PW, BCR and Pl analysis
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