Problem
The right-of-way for a new highway will cost $1.5 million. The roadbed and earthworks will cost $3 million. The pavement will cost $2.5 million, and its life is 20 years. The discount rate is 9%, and the project has an assumed life of 20 years. The new highway will save travelers $750K worth of travel time each year. What is the benefit/cost ratio if the right-of-way cost is the disband fit to property owners? What is the benefit/cost ratio if the right-of-way cost is the price paid by government in eminent domain proceedings?
The response should include a reference list. Double-space, using Times New Roman 12 pnt font, one-inch margins, and APA style of writing and citations.