Two plans have been proposed for a high speed passenger rail line between Cincinnati and Cleveland....

Two plans have been proposed for a high speed passenger rail line between Cincinnati and Cleveland. The plans are summarized in the table below. Costs and benefits are in millions of dollars. Use benefit-cost ratio analysis with an interest rate of 8% to determine which, if either, of the plans should be accepted. Identical replacement assumption is applicable.

	Plan A	Plan B
Econ. Life (Years)	30	15
Salvage Value	$20	$15
Annual Benefits	$28.5	$22
Annual M&O Cost	$4	$2.5
Initial Cost	$260	$165

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jeff jeffy answered 2 years ago

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