Need help with a Case Study 47: Bigstate Highway Department. Need an introduction, assumptions/calculations, and recommendations. All data is in the case report. Thank you.

Case 47 Bigstate Highway Department Bigstate's highway department must select projects to be built during the coming year. Eleven projects have passed the preliminary screening (see Table 47-1). Five projects have mutually exclusive alternatives (for example A1, A2, and A3 are mutually exclusive alternatives for Project A). Each project and its alternatives must be evaluated at a 10% discount rate. The best set must be selected within a budget constraint of $36 million for the first year's construction cost. For this analysis all projects and alternatives can be assumed to have a life of 20 years. Political considerations require that at most one project of A and C be selected. Similar considerations require that at least three projects be selected from projects A, B, D, F, H, and J. One of the biggest problems you have is that the Commissioner has identified the value for saving a human life with a range of $100,000 to $500,000, rather than a single value. Similarly, the department has determined that preventing a serious injury has a value between one-quarter and two-thirds of the value of a saved life.' What projects do you recommend? Table 47-1 Bigstate's Possible Highway Projects A1 A2 A3 Injuries 11 11 11 BI B2 8 9 150 0 DI D2 First Cost Annual Operating (SM) Cost ($1000s) 8.0 350 10.5 550 14.2 950 12.0 400 14.5 500 4.3 7.5 500 11.0 800 9.4 0 6.6 100 9.3 150 7.5 200 5.6 300 7.9 275 11.4 475 16.0 850 Annual Benefits Time and Distance ($1000s) Lives 950 2 1300 2. 1350 2 500 4 1600 6 1100 1950 1950 4 700 3 1100 0 1500 0 1150 0 1500 1 2800 1 950 0 950 2 2500 1 8 10 E 5 F1 6 F2 0 0 1500 1 H 1 JI J2 K 8.3 3 3 8 Option How do your recommendations change over the range of possibilities for the values of lives and injuries? This can be presented graphically or in statements similar to the following: "For values of human life between $175,000 and $238,000, do projects A3, DI...." Case 47 Bigstate Highway Department Bigstate's highway department must select projects to be built during the coming year. Eleven projects have passed the preliminary screening (see Table 47-1). Five projects have mutually exclusive alternatives (for example A1, A2, and A3 are mutually exclusive alternatives for Project A). Each project and its alternatives must be evaluated at a 10% discount rate. The best set must be selected within a budget constraint of $36 million for the first year's construction cost. For this analysis all projects and alternatives can be assumed to have a life of 20 years. Political considerations require that at most one project of A and C be selected. Similar considerations require that at least three projects be selected from projects A, B, D, F, H, and J. One of the biggest problems you have is that the Commissioner has identified the value for saving a human life with a range of $100,000 to $500,000, rather than a single value. Similarly, the department has determined that preventing a serious injury has a value between one-quarter and two-thirds of the value of a saved life.' What projects do you recommend? Table 47-1 Bigstate's Possible Highway Projects A1 A2 A3 Injuries 11 11 11 BI B2 8 9 150 0 DI D2 First Cost Annual Operating (SM) Cost ($1000s) 8.0 350 10.5 550 14.2 950 12.0 400 14.5 500 4.3 7.5 500 11.0 800 9.4 0 6.6 100 9.3 150 7.5 200 5.6 300 7.9 275 11.4 475 16.0 850 Annual Benefits Time and Distance ($1000s) Lives 950 2 1300 2. 1350 2 500 4 1600 6 1100 1950 1950 4 700 3 1100 0 1500 0 1150 0 1500 1 2800 1 950 0 950 2 2500 1 8 10 E 5 F1 6 F2 0 0 1500 1 H 1 JI J2 K 8.3 3 3 8 Option How do your recommendations change over the range of possibilities for the values of lives and injuries? This can be presented graphically or in statements similar to the following: "For values of human life between $175,000 and $238,000, do projects A3, DI