Recent development near Eugene, Oregon, has identified a need for improved access to Interstate 5 at one location. Civil engineers and public planners are considering three alternative access plans. Benefits are estimated for the public in general; disbenefits primarily affect some local proprietors who will see traffic pattern changes as undesirable. Costs are monetary for construction and upkeep, and savings are a reduction in cost of those operations today that will not be necessary in the future. All figures are relative to the present situation, retention of which is still an alternative, and are annualized over the 20-year planning horizon. Hint: disbenefits should be taken as negative benefits and savings as reduction of costs.

Please show cash flow diagram and please don't use excel functions. Thank you!

Alternative	A	B	C
Benefits	$200,000	$300,000	$400,000
Disbenefits	$37,000	$69,000	$102,000
Costs	$150,000	$234,000	$312,000
Savings	$15,000	$31,000	$42,000

a. What is the B/C ratio for each of these alternatives?

b. Using incremental B/C ratio analysis, which alternative should be selected? Hint: remember to start your incremental analysis with one alternative (the lowest cost) and do nothing, then you proceed to the next iteration where you analyze the winner against another alternative and so on.

c. Determine the value of B C for each alternative and specify which alternative should be selected.