Ask Question, Ask an Expert

+61-413 786 465

info@mywordsolution.com

Ask Business Economics Expert

Oregon Department of Transportation (ODOT), a public-sector entity, is evaluating two alternate routes to I-5 in the Portland area. Route 105 will cost ODOT $500,000 in initial investment and will cost $10,000 per year to maintain the route. This route will benefit the public and local businesses at $100,000 per year. However, due to the length of the route and other considerations, there will be a toll charged to the users. The toll is estimated to cost the public a total of $2,000 annually. The other route in consideration is Route 305 that will cost ODOT $100,000 more than Route 105. The annual O&M is $5,000 less than Route 105. The public benefit is $15,000 more per year than Route 105. With Route 305 there is no issue of toll to the users. Both options do not have a salvage value. ODOT uses a 5-year planning horizon and 10% MARR to evaluate their projects. Based on the information provided, which alternative should ODOT invest in?

Business Economics, Economics

  • Category:- Business Economics
  • Reference No.:- M92405129
  • Price:- $20

Priced at Now at $20, Verified Solution

Have any Question?


Related Questions in Business Economics

Answer in true or false1 compensation of employees is the

Answer in true or False: 1) Compensation of employees is the largest component of national income. 2) National income is the income that individuals and firms earn from their production.

Sally purchases hardwood lumber for a custom

Sally purchases hardwood lumber for a custom furniture-building shop. She uses three suppliers, Northern Hardwoods, Mountain Top, and Spring Valley. Lumber is classi ed as either clear or has defects. Sally estimates tha ...

What is the theory of consumer choice and how it consumers

What is the theory of consumer choice and how it consumers facing trade-offs make decisions and how they respond to changes in their environment?

A wall street journal article noted that a study by us

A Wall Street Journal article noted that a study by U.S. Congressional Budget Office "estimated raising the minimum wage to $10.10 per hour reduced U.S employment by 500,000 but lift 900,000 Americans out of poverty ". a ...

1 suppose that the total benefit and total cost from a

1. Suppose that the total benefit and total cost from a continuous activity are, respectively, given by the following equations: B(Q) = 100 + 36Q - 4Q2 and C(Q) = 80 + 12Q. [Note: MB(Q) = 36 - 8Q and MC(Q) = 12.] a. Writ ...

1 dominos pizza is willing is willing to pay kes 250 in

1. Domino's pizza is willing is willing to pay Kes 250 in airtime to each person interviewed about his or likes and dislikes of types of pizza crust. Of the people interviewed, 220 liked a thin crust, 270 like a thick cr ...

Iq test scores of students are normally distributed with

IQ test scores of students are normally distributed with mean μ=100 and standard deviation σ=10. What is the 33th percentile of the IQ scores? For a randomly chosen student, what is the probability that his or her IQ sco ...

Suppose the market demand and market supply curves are

Suppose the market demand and market supply curves are given by the following equations: QD = 120 - 10P QS = 20P a. Draw a figure of supply and demand representing this market. Be sure to label the axes and intercepts. ( ...

What is the role of local government leadership in assuring

What is the role of local government leadership in assuring that departments and divisions work together to achieve municipal goals and objectives?

Determine the minimum sample size required when you want to

Determine the minimum sample size required when you want to be 95% confident that the sample mean is within one unit of the population mean. Assume a standard deviation of 4.3 in a normally distributed population.

  • 4,153,160 Questions Asked
  • 13,132 Experts
  • 2,558,936 Questions Answered

Ask Experts for help!!

Looking for Assignment Help?

Start excelling in your Courses, Get help with Assignment

Write us your full requirement for evaluation and you will receive response within 20 minutes turnaround time.

Ask Now Help with Problems, Get a Best Answer

Why might a bank avoid the use of interest rate swaps even

Why might a bank avoid the use of interest rate swaps, even when the institution is exposed to significant interest rate

Describe the difference between zero coupon bonds and

Describe the difference between zero coupon bonds and coupon bonds. Under what conditions will a coupon bond sell at a p

Compute the present value of an annuity of 880 per year

Compute the present value of an annuity of $ 880 per year for 16 years, given a discount rate of 6 percent per annum. As

Compute the present value of an 1150 payment made in ten

Compute the present value of an $1,150 payment made in ten years when the discount rate is 12 percent. (Do not round int

Compute the present value of an annuity of 699 per year

Compute the present value of an annuity of $ 699 per year for 19 years, given a discount rate of 6 percent per annum. As