Two highway capacity improvement plans have been proposed for a congested suburban arterial. Select the most cost-effective alternative using present worth analysis. Assume an interest rate of 5 percent per year and a design life of 20 years for each alternative.
   
Alternative A entails improvements to traffic signals at an initial cost of $82,000 and a salvage value of $5000. Annual maintenance costs will be $700 per year.
   
Alternative B entails traffic signal improvements and addition of a left-turn lane at an initial cost of $72,000 and no salvage value. Annual maintenance costs will be $1200 per year, except in year 10, in which a rehabilitation will cost $14,000.

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sol intrest rate i5 Alternative Alternative B 72000 A Coitial cost 82000 1200 Annual ... View the full answer