A do-nothing and two mutually exclusive alter-natives are
Chapter , Problem 9-40(choose chapter or problem)
A do-nothing and two mutually exclusive alter-natives are being considered for reducing trafficcongestion. User benefits come from reduced con-gestion once the project is complete, while userdisbenefits are due to increased congestion duringconstruction. The interest rate is 9%, and the lifeof each alternative is 15 years. Which alternativeshould be chosen? User benefits ($M/yr)2.1 2.6User disbenefits ($M)1.2 2.1First cost ($M)6.9 9.9Operations and maintenance ($M/yr) 0.75 0.825(a)Use the benefitcost ratio.(b)Use the modified benefitcost ratio.(c)Use the public/government version of the B/Cratio.(d)Assume these numbers apply to a private firmand use a present worth index.(e)Are your recommendations for (a) through (d)consistent? Which measure gives the largestvalue? Why?
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