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Business, 25.08.2021 01:00 dianactorres

One of the three traffic control improvement must be done. Conduct a B/C analysis and identify which one is favored. The improvement will be required for the foreseeable future. Use an interest rate of 6.00%. The current situation is estimated to have annual accident costs of 60,000. Option A B C
Installed Cost 110,000 90,000 140,000
Annual Repair, operating cost 8,000 6,000 5,000
Estimated Annual Accident Cost 23,000 28,000 30,000
Estimated Annual Travel time cost increase 10,000 9,000 4,500
Life (Yrs.) 12 10 18

Required:
a. What is the annual accident reduction benefit from option A, B and C?
b. Which option is the best public investment?

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