The Arkansas Department of Transportation may build a new highway between Texarkana and Fort Smith, currently a distance of 181 miles. Design 1 is a four-lane highway built entirely on the existing route. Design 2 includes a significant rerouting through a mountainous region that would reduce the mileage to 166 miles. Design 3 is a fully access-controlled interstate-quality highway with more rerouting, which would reduce the total mileage to 148 miles.Benefits for this project depend on mileage saved times the number of vehicles, plus the estimated value for the larger number of trips that will occur with the shorter and faster routes. The estimated benefits and costs of the three potential designs are shown in the table. Doing nothing yields no costs and no benefits. Using incremental analysis for the B/C ratio, a planning horizon of 75 years, and a MARR of 6%, which design would you recommend?
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