Question: Three mutually exclusive highway bridge projects are under consideration by a governmental agency. Which of three bridges, if any, should be recommended to the governmental

 Three mutually exclusive highway bridge projects are under consideration by a

Three mutually exclusive highway bridge projects are under consideration by a governmental agency. Which of three bridges, if any, should be recommended to the governmental agency? Use incremental B/C analysis, an interest rate of 10% per year, compounded annually, and a life of 20 years. Compare alternative on the basis of annual worth (AW) and state which project is finally selected. Assuming that you are an engineer who is performing the above analysis for a company whose client is the governmental agency, how could the result of your analysis impact public policy making or public planning? Assume that one of the above projects was determined to be economically justified, was selected, and will soon be recommended to the governmental agency. However, upon further study, you discovered that there is a disbenefit that has not been included in the analysis. The disbenefit involves the relocation of a bus stop used by school children, and as a result the children will have to walk further to get to the bus stop. Is this acceptable? Please explain why or why not

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Finance Questions!