Duck Construction Has Proposed Two Alternatives for Constructing a New

question 9

Essay

Duck Construction has proposed two alternatives for constructing a new bridge in Oregon. Based on data from recent bridge construction projects of comparable size, the estimated costs for each alternative are given below. Use the conventional B- C ratio method, with PW as the equivalent- worth measure, to determine which alternative should be selected at an interest rate of 9% per year. Assume a study period of 35 years. $$\begin{array} { | l | l | l | } \hline & \text { Alternative I } & \text { Alternative II } \\\hline \text { Construction and design costs, } \$ \mathrm { M } & \$ 1,400,000 & \$ 1,410,000 \\\hline \text { Annual maintenance, } \$ / \mathrm { yr } & \$ 170,000 & \$ 190,500 \\\hline \text { Annual benefits, } \$ / \mathrm { yr } & \$ 690,000 & \$ 712,500 \\\hline\end{array}$$

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Definitions:

Lateral Geniculate Nucleus

A vital relay center in the thalamus for the visual pathway, processing signals from the retina to the visual cortex.

Ipsilateral Eye

The eye on the same side of the body as another specified point of reference, often used in the context of neurological functions or diseases.

Contralateral Eye

Refers to the eye on the opposite side of the body relative to a specific point of reference or stimulus.

Glaucoma

A group of eye conditions that damage the optic nerve, often caused by abnormally high pressure in the eye, and can lead to loss of vision if not treated.