SOLUTION: The government is evaluating alternative routes for a new road into a formerly inaccessible region. Two routes are available and their pertinent data are tabulated below. The roads
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Question 1121257: The government is evaluating alternative routes for a new road into a formerly inaccessible region. Two routes are available and their pertinent data are tabulated below. The roads are assumed to have an economic life of 50 years, and interest rate- is 8%. By using B/C, which route should be selected?
Route A Route B
Construction Cost 1,850,000.00 2,200,000.00
Annual maintenance 20,000.00 30,000.00
Annual Savings in Flood Damage 50,000.00 70,000.00
Answer by solver91311(24713) (Show Source): You can put this solution on YOUR website!
This is a Mathematics help website and is an inappropriate forum for your Economics question.
John
My calculator said it, I believe it, that settles it
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