Four competing and mutually exclusive ITS (i.e., Intelligent Transportation Systems) alternatives are being considered to...
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Four competing and mutually exclusive ITS (i.e., Intelligent Transportation Systems) alternatives are being considered to mitigate congestion on the Chicago Metro Area highway network. You have been asked to identify the best alternative based on an incremental B/C analysis, using the modified benefit/cost ratio. Data for each alternative is given in the table below. Remember that benefits are measured as the reduction in the costs to the users of the facility. All the values are in $1,000s. Which of the projects is the best alternative at an interest rate of 7%?
ITS Alternatives Capital Cost Annual User Costs Annual Maintenance Costs 70 45 Existing 1 2 3. 4 0 1,500 2,000 3,000 5,000 Estimated Service Life (Years) 20 20 20 20 25 2,000 1,800 1,600 1,300 1,200 40 30 25
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