Question: The two alternatives shown below are for projects to be considered to improve the traffic at a road intersection. Alternative Alternative First Cost $38,000 $87,000
The two alternatives shown below are for projects to be considered to improve the traffic at a road intersection.
| Alternative | Alternative | |
| First Cost | $38,000 | $87,000 |
| Annual M & O, $/year | $49,000 | $64,000 |
| Benefits, $/year | $110,000 | $160,000 |
| Dis-benefits, $/year | $26,000 | ------- |
Using a B/C analysis, calculating at an interest rate of 7% per year and a 10 year study period, answer the following questions.
a. The B/C ratio for alternative A is [b]
b. The B/C ratio for alternative B is [a]
c. The incremental B/C analysis ratio is [f]
d. The best alternative to be chosen will be [c]
A)2.09, B)1.54, C)Alternative B, D)3.19 E)4.64 F)3.46>1 G)4.45>1 H)Alternative A
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