Question: Just need the answer to compare it Thanks for your help! A state-sponsored Forest Management Bureau is evaluating alternative routes for a new road into
Just need the answer to compare it Thanks for your help!
A state-sponsored Forest Management Bureau is evaluating alternative routes for a new road into a formerly inaccessible region. Three mutually exclusive plans for routing the road provide different benefits, as indicated in table below. The roads are assumed to have an economic life of 50 years, and MARR is 8% per year. Which route should be selected according to the B-C ratio method? Assume that a roadway must be constructed. Construction Annual Maintenance Annual Savings in Route Costs Cost Fire Damage $185,000 $2,000 $5,000 220,000 3,000 7,000 290,000 4,000 12,000 Click the icon to view the interest and annuity table for discrete compounding when the MARR is 8% per year. Annual Recreational Benefit $3,000 6,500 6,000 Annual Timber Access Benefit $500 1,500 2,800 5 Perform the incremental B-C Analysis. Fill-in the table below. (Round to four decimal places.) Alternative Inc. B-C ratio is the alternative acceptable? From an incremental analysis, route is the "least objectionable" alternative. Enter your answer in each of the answer boxes
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