Question: The two highway projects shown below are to be compared using Benefit cost method. Which one, if either, should be build? Use interest rate of
The two highway projects shown below are to be compared using Benefit cost method. Which one, if either, should be build? Use interest rate of 10% per year. Alternative I Alternative II First Cost 5,000,000 - 7,000,000 Annual maintenance cost 70,000 - 60,000 Annual benefits 175,000 - 450,000 Annual disbenefits 30,000 - 35,000 Life: both have infinite life
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