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Your consulting firm has been asked by a private roadway maintenance and operations form to evaluate five proposals (new routes) for a toll road. The

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Your consulting firm has been asked by a private roadway maintenance and operations form to evaluate five proposals (new routes) for a toll road. The private firm will be responsible to construct, maintain and operate the facility. The private firm will sell bonds to raise the necessary capital for the project and will finance it for 50 years. The firm has a MARR of 4% per year. Each Alternative with its revenue and cost is listed below. Assume 365 days per year. Route A Route B Route Route Route E Initial construction cost $100 million $120 million $140 million $150 million $160 million Annual Roadway Maintenance and operation cost $300,000 $240,000 $290,000 $330.000 $280,000 Toll fee per vehicle $0.50 $1.00 $0.75 $1.00 $1.00 Average Number of Vehicles per day 35,000 40.000 30.000 40.000 Environmental Disbenefits per year $30,000 $40,000 $10,000 $40,000 $10,000 1. Using the conventional benefit/cost method, was is the B/C ratio for Route (A) [Select] 2. Using the conventional benefit/cost method was is the B/C ratio for Route (B) [Select) 3. Using the conventional benefit/cost method, was is the B/C ratio for Route (C) Select] 4. Using the conventional benefit/cost method, was is the B/C ratio for Route (D) [Select) ? 5. Using the conventional benefit/cost method, was is the B/C ratio for Route (E) Select] ? 6. Which Route is the preferred choice if only one is chosen, economically speaking Select) 7. The private firm decides to sell Bonds with a face value of $2000 to raise the capital for the project. The bond will have a coupon interest rate of 4%. Interest payments will be made on a quarterly basis. The bond maturity date is for 10 years. If you were able to purchase the bond for $1800, what is the actual yield rate of return, ROR, as a nominal rate on the bond per year if you kept the bond the full 10 years Select

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