100% Updated, complete, and clear question:
A new Canada/United States border crossing was constructed to bypass the congested crossings at St. Stephen, NB and Calais, Maine, as per the figure attached as "Figure".
A total of 6 alternatives were considered. Alternative 2A and 3 were the ones considered to meet the criteria, with Alternative 3, being the one eventually selected. Find the file attached as "File" and see the map on Page II-5 for the alternatives and see Page II-14 for additional discussion of the recommended alternatives.
Assuming the costs in the attached table named "Part a" (including a highway upgrade in year 25), and assuming a 25 year planning horizon with 7% discount rate:
a. Find the BCR and BCRM for both alternatives attached as “Part a”. Are both options viable with both ratios?
b. How do your BCR results change if you use a 10% discount rate?
c. Briefly profile one other of the 6 alternatives and briefly describe why you think it was not chosen.
BCR, Is given by the ratio of the present worth of the net users' benefits (social benefits less social costs) to the present worth of the net sponsors’' costs for a project. That is,
Benefit Cost Ratio (BCR)=(Benefit Cost Ratio)/(Benefit Cost Ratio)
Modified benefit-cost ratio: The ratio of the present worth (or annual worth) of benefits minus the present worth (or annual worth) of operating costs to the present worth (or annual worth) of capital costs, that is,
Modified Benefit-Cost Ratio (BCRM) = (PW(benefits)-PW(operating costs))(PW(capital costs))
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