A state-sponsored Forest Management Bureau is evaluating allomative routes for a

Question

A state-sponsored Forest Management Bureau is evaluating allomative routes for a new road into a formerly inaccessible region. Three mutually exclusive plans for routing the road provide different benefts, as indicated in table below. The roads are assumed to have an economic life of 40 that a roadway must be constructed. years, and MARR is 7% per year. Which route should be selotod according to the B-Craio method? Assum Savings i nnual Recrational nns Tinber Route $285,000 210,000 190,000 Cost $3,900 3,000 1,700 Fire Damage $11,500 6,500 4,500 Benefit $5,500 7,000 3,500 Access Benefit 52,700 ,400 400 Cicktho con to view the interest and annuity table for discrete co pour dng when the MARR is 7% per year Perform the incremental B-C Analysis. Fillin the table below.(Round to four decimal places) Alternative Ine. B-C ratio Is the alternative acceptable? 0.5266 2.3213 0735 No From an ncremental analysis, route Bis the-east ob ectorable. atemauve

Explanation / Answer

benefit cost ratio= the possible inflows divided by outflows of cash

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