Question: The two alternatives shown below are for projects to be considered to improve the traffic at a road intersection. Using a B/C analysis, an interest

 The two alternatives shown below are for projects to be considered

The two alternatives shown below are for projects to be considered to improve the traffic at a road intersection. Using a B/C analysis, an interest rate of 7% per year and a 10 year study period. First cost, S Annual M & O, S/year Benefits, S/year Dis-benefits, S/year 38,000 49,000 10,000 26,000 Alternative B 87,000 64,000 160,000 You are required to do the following: a. Calculate the B/C ratio for alternative A b. Calculate the B/C ratio for alternative B c. Do the incremental B/C analysis ratio d. Choose the best alternative (4 Marks) 4 Marks) (4 Marks)

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