III.A state highway department is planning the construction of a 50 mile, four-lanetoll road. It estimates that the construction cost (t = 0) will be $200M and annualmaintenance costs will be $IM per year. In addition, every 20 years, a major resurfacingwill have to be carried out at a cost of $25M. It is estimated that 6 million cars and 400,000trucks will use the road cach year, and it is decided that the toll charged to a truck will be4 times that of a car. The interest rate is 7%.IDetermine what the toll should be for each car and truck to cover all expenses for a planningperiod of 40 years. Assume the toll being charged and the estimated traffic flows do notvary year-to-year.

Construction cost = $200,000,000PV of maintenance cost =10000000.007=$14285714 for perpetuity PV of…

A state highway department is planning the all road. It estimates that the construction cost (t = 0) will be $200M and maintenance costs will be $IM per year. In addition, every 20 years, a major res will have to be carried out at a cost of $25M. It is estimated that 6 million cars and ucks will use the road cach year, and it is decided that the toll charged to a truc times that of a car. The interest rate is 7%. Determine what the toll should be for each car and truck to cover all expenses for a eriod of 40 years. Assume the toll being charged and the estimated traffic flow

A state highway department is planning the all road. It estimates that the construction cost (t = 0) will be $200M and maintenance costs will be $IM per year. In addition, every 20 years, a major res will have to be carried out at a cost of $25M. It is estimated that 6 million cars and ucks will use the road cach year, and it is decided that the toll charged to a truc times that of a car. The interest rate is 7%. Determine what the toll should be for each car and truck to cover all expenses for a eriod of 40 years. Assume the toll being charged and the estimated traffic flow

Traffic and Highway Engineering

5th Edition

ISBN:9781305156241

Author:Garber, Nicholas J.

Publisher:Garber, Nicholas J.

Chapter13: Evaluating Transportation Alternatives

Section: Chapter Questions

Problem 17P

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