The Department of Transportation is planning to replace a four-way stop intersection with a round - about. The Department estimates the replacement will cost $500,000 in material and require 800 labor hours. The annual maintenance budget is $25,000. The hourly wage on this project will be $42.50. The average construction wage in the area is $35.00 per hour. The round - about should save drivers 100,000 hours annually. The average hourly wage in the area is $24.64. There have been no fatalities or major accidents at the intersection in recent years. What is the first-year cost of the project? a $528,000 b. $534,000 C. $553,000 d. $559,000
The Department of Transportation is planning to replace a four-way stop intersection with a round - about. The Department estimates the replacement will cost $500,000 in material and require 800 labor hours. The annual maintenance budget is $25,000. The hourly wage on this project will be $42.50. The average construction wage in the area is $35.00 per hour. The round - about should save drivers 100,000 hours annually. The average hourly wage in the area is $24.64. There have been no fatalities or major accidents at the intersection in recent years. What is the first-year cost of the project? a $528,000 b. $534,000 C. $553,000 d. $559,000
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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Transcribed Image Text:The Department of Transportation is
planning to replace a four-way stop
intersection with a round - about. The
Department estimates the replacement will
cost $500,000 in material and require 800
labor hours. The annual maintenance
budget is $25,000. The hourly wage on this
project will be $42.50. The average
construction wage in the area is $35.00 per
hour. The round - about should save drivers
100,000 hours annually. The average hourly
wage in the area is $24.64. There have
been no fatalities or major accidents at the
intersection in recent years. What is the
first-year cost of the project? a $528,000 b.
$534,000 C. $553,000 d. $559,000
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