Question: Two different routes are under consideration for a new interstate highway: TABLE P16.13 For either route, the volume of traffic will be 400,000 cars per

Two different routes are under consideration for a new interstate highway:
TABLE P16.13

For either route, the volume of traffic will be 400,000 cars per year. These cars are assumed to operate at $0.25 per mile. Assume a 40-year life for each road and an interest rate of 10%. Determine which route should be selected.

Length of First Annual Highway Cost Upkeep The "long" route 22 miles $21 million $140,000 Transmountain 10miles $45 million $165,000 shortcut

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