The state department of transportation dot is considering a, Business Economics

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The state department of transportation dot is considering a

The state Department of Transportation (DOT) is considering a proposal for an additional turn lane at a busy intersection. The added maintenance costs will be $3000 annually for the next 10 years, and the time savings to motorists are valued at $4000 per year. The improved traffic flow is projected to save .8 statistical lives per year. Using an interest rate of 12% and the NHTSA standard, how much should DOT be willing to pay for the improvement?

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