Two different routes are being considered for a mountain highway. the high road would require building several bridges and would navigate around the highest mountain points, thus requiring more roadway. the low road would construct several tunnels for a more direct route through the mountains.
Projected travel volume for this new section of road is 2500 cars per day.
Use the modified B/C ratio to determine which alternative should be recommended.
Assume that project life is 45 years and i=6%.
|
HIGH ROAD |
LOW ROAD |
| Construction cost/mile |
$200,000 |
$450,000 |
| Number of miles required |
35 |
10 |
| Annual benefit/car-mile |
$0.015 |
$0.045 |
| Annual O&M costs/mile |
$2,000 |
$10,000 |