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 Low The High Road Road $200.000 $450.000 Average consuuction cost per nile Number of miles required Annual benefit p

The Low The High Road Road $200.000 $450.000 Average consuuction cost per nile Number of miles required Annual benefit per car per 10 35 $0.045 $0.015 mile Aanual O&M costs per mile $2000 S10,000

Step by Step Solution

3.24 Rating (173 Votes )

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock

Annual Travel Volume 2500 365 912500 carsyear The High Road 1 st Cost 200000 35 7000... View full answer

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

Document Format (1 attachment)

Word file Icon

7-B-E-M (502).docx

120 KBs Word File

Students Have Also Explored These Related Economics Questions!