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  3. 4 a road is being proposed to facilitate a housing...

Question: 4 a road is being proposed to facilitate a housing...

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4. A road is being proposed to facilitate a housing development on a scenic lake. Two alternatives have been suggested. One of the roadway alignments is to go around the lake and slightly impact a wetland. The second alternative will also go around the lake and will significantly impact two wetlands. The following table shows the anticipated costs for each alternative. Assuming that the annual interest rate is 7 percent, determine which alternative is preferred using equivalent annual cost analysis. AnnualService Annual Wetland First Maintenance Life Salvage Rehabilitation Annual Roadway Alternative Costs (S)C Costs (5) (years) Value (S) Costs (s)Lighting Costs () 95,000 155,000 5,000 4,000 15 55,000 15 45,000 3,500 6,500 3,500 5,500

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