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Business, 05.05.2020 23:08 mayorga2genesis2
A do-nothing and two mutually exclusive alternatives are being considered for reducing traffic congestion. User benifits come from reduced congestion once the project is complete, while user disbenefits are due to increased congestion during construction. The interest rate is 8% and the life of each alternative is 5 years. Which alternative should be chosen?Alternative A BUser benefits ($M/yr) 2.1 2.6User disbenefits ($M) 1.2 2.1First cost ($M) 6.9 9.9O&M ($M/yr) 0.75 0.825(a) Use the benefit-cost ratio.(b) Use the public/government version of the B/C ratio. Please show me a full step by step solution.
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