Let us use annual worth method of comparision.
AW of route X = 10,000,000(A/P, 5%, 30) + 35,000 + 450,000
= 10,000,000(0.0651) + 35,000 + 450,000
= 651,000 + 35,000 + 450,000
= $1,136,000
AW of route Y = 15,000,000(A/P, 5%, 30) + 55,000 + 200,000
= 15,000,000(0.0651) + 55,000 + 200,000
= 976,500 + 55,000 + 450,000
= $1,231,500
Since AW of route X is less than route Y, therefore, route X should be accepted.
Two routes are under consideration for new highway. The northerly route X would be located about...