Problem 4: 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. The roads are assumed to have an economic life of 50 years, and the discount rate used is 12% per year. Consider all savings and benefits as user benefits. Route A B C Construction Costs 185,000 220,000 290,000 Annual Maintenance Costs 2,000 3,000 4,000 Annual Savings Annual Recreational in Fire Damage 10,000 14,000 24,000 Benefit 9,000 19,500 18,000 a) Determine the B/C ratio and Profitability Index for each alternative. b) Using B/C analysis, which route should be selected? Annual Timber Access Benefit 500 1,500 2,800