Question

You have been hired as a consultant to advise the Northern Virginia Regional Transportation Authority on the best course of action with regard to an extension of the Metro. The expected total cost of extending the Metro from West Falls Church to Dulles Airport is $5 billion; the expected total cost of extending the Metro from West Falls Church past Dulles to Leesburg is $12 billion; the expected total cost of extending the Metro from West Falls Church past Dulles, past Leesburg to Winchester in the Shenandoah Valley is $22 billion. The expected total benefit of extending the Metro from West Falls Church to Dulles Airport is $50 billion; the expected total benefit of extending the Metro from West Falls Church past Dulles to Leesburg is $62 billion; the expected total benefit of extending the Metro from West Falls Church past Dulles, past Leesburg to Winchester in the Shenandoah Valley is $65 billion. What is your advice regarding the proposed extension?

Question 32 options: A) Do not extend the Metro, B) Extend the Metro to Dulles C) Extend the Metro to Leesburg D) Extend the Metro to Winchester

Answer 1

	Expected cost	Expected Benefit	Expected Benefit(EB) – expected Cost(EC)
West Falls Church to Dulles Airport	$5 billion	$50 billion	= $45 billion
West Falls Church past Dulles to Leesburg	$12 billion	$52 billion	=$ 40 billion
West Falls Church past Dulles, past Leesburg to Winchester in the Shenandoah Valley	$22 billion	$65 billion	= $43 billion

From above Table Expected Benefit – Expected cost is highest for the project 1 i.e. extending metro from West Falls Church to Dulles Airport.

Thus the correct option is B.