Question: Two different routes, which entail driving across a mountainous section, are being considered for a highway construction project. The first route (the high road) will

Two different routes, which entail driving across a mountainous section, are being considered for a highway construction project. The first route (the high road) will require building several bridges and navigates around the highest mountain points, thus requiring more roadway. The second alternative (the low road) will require the construction of several tunnels, but takes a more direct approach through the mountainous area. Projected travel volume for this new section of road is 2500 cars per day. Given the following data, use the modified B/C ratio to determine which alternative should be recommended. Assume that project life is 45 years and i = 6%.

The High The Low $200,000 $450,000 10 Road Road Average consuruction c per mile Number of miles required Annual benefit per car per 35 S0015 $0.045 mile Annual O&M cosLs perile $2000 $10,000

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