Question: Two different routes are being considered for a mountain highway. the high road would require building several bridges and would navigate around the highest mountain

Two different routes are being considered for a mountain highway. the high road would require building several bridges and would navigate around the highest mountain points, thus requiring more roadway. the low road would construct several tunnels for a more direct route through the mountains.Projected travel volume for this new section of road is 2500 cars per day. Use the modified B/C ratio to determine which alternative should be recommended. Assume that project life is 45 years and i=6%.

	HIGH ROAD	LOW ROAD
Construction cost/mile	$200,000	$450,000
Number of miles required	35	10
Annual benefit/car-mile	$0.015	$0.045
Annual O&M costs/mile	$2,000	$10,000

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