Two different routes are under consideration for a new interstate highway: TABLE P16.13 For either route, the
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TABLE P16.13
For either route, the volume of traffic will be 400,000 cars per year. These cars are assumed to operate at $0.25 per mile. Assume a 40-year life for each road and an interest rate of 10%. Determine which route should be selected.
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Length of First Annual Highway Cost Upkeep The "long" route 22 miles $21 million $140,000 Transmountain 10miles $45 million $165,000 shortcut
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Option 1 The long route users annual cost 22 miles 025 per mile 400000 cars 2200000 sponsors annua...View the full answer
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