Answer Happy

Problem 1: Three transportation projects have been proposed to increase the safety on a roadway intersection. The following table shows the costs related to each project alternative. Assuming a 10% interest rate, calculate the present worth of cost of each alternative and determine the best alternative. Alternative Initial Annual Operating Cost Life Span (Years) Salvage Value (S) Construction Cost ($) ($) I 100,000 20,000 15 25,000 || 120,000 16,000 15 30,000 50,000 25,000 10 5,000 Show all of your calculations and draw the cash flow diagram of each alternative neatly.