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Two plans have been proposed for a high-speed passenger rail line between Cincinnati and Cleveland. The plans are summarized in the table below. Costs and

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Two plans have been proposed for a high-speed passenger rail line between Cincinnati and Cleveland. The plans are summarized in the table below. Costs and benefits are in millions of dollars. Use benefit-cost ratio analysis with an interest rate of 10% to determine which, if either, of the plans should be accepted. Data Plan A Econ. Life , Years 40 Salvage Value $15 Annual Benefits $25 Annual M & O Cost $5 Initial Cost $300 Plan B 20 $12 $22 $3 $160

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