An analysis of accidents in a rural state indicates that widening a highway from 30 ft to 40 ft will decrease the annual accident rate from 1,250 to 710 per million vehicle-miles. Calculate the average daily number of vehicles that should use the highway to justify widening on the basis of the following estimates: (i) the average loss per accident is $1,200; (ii) the cost of widening is $117,000 per mile; (iii) the useful life of the widened road is 25 years; (iv) annual maintenance costs are 3% of the capital investment; and (v) MARR is 12% per year. (a) 78 (b) 63 (c) 34 (d) 59 (e) 27. A super market chain buys loaves of bread from its supplier at $0.50 per loaf. The chain is considering two options to bake its own bread.
An analysis of accidents in a rural state indicates that widening a highway from 30 ft to 40 ft will decrease the annual accident rate from 1,250 to 710 per million vehicle-miles. Calculate the average daily number of vehicles that should use the highway to justify widening on the basis of the following estimates: (i) the average loss per accident is $1,200; (ii) the cost of widening is $117,000 per mile; (iii) the useful life of the widened road is 25 years; (iv) annual maintenance costs are 3% of the capital investment; and (v) MARR is 12% per year. (a) 78 (b) 63 (c) 34 (d) 59 (e) 27. A super market chain buys loaves of bread from its supplier at $0.50 per loaf. The chain is considering two options to bake its own bread.
Trending now
This is a popular solution!
Step by step
Solved in 2 steps with 3 images
