Two different routes are under consideration for a new interstate highway as folows in the table below. For either route, the volume of traffic will be 400,000 cars per year. These cars are assumed to operate at $0.25 per mile. Assume a 40-year life for each road and an interest rate of 10%. Determine which route should be selected. 15 Click the içon to view the data for the two routes. 16 Click the icon to view the interest factors for discrete compounding when i= 10% per year.

Two different routes are under consideration for a new interstate highway as folows in the table below. For either route, the volume of traffic will be 400,000 cars per year. These cars are assumed to operate at $0.25 per mile. Assume a 40-year life for each road and an interest rate of 10%. Determine which route should be selected. 15 Click the içon to view the data for the two routes. 16 Click the icon to view the interest factors for discrete compounding when i= 10% per year.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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