Dunkin City wants to build a new bypass between two major roads that will cut travel time for commuters. The road will cost $14,000,000 and save 17,500 people $100/yr in gas. The road will need to be resurfaced every year at a cost of $7,500. The road is expected to be used for 20 years. Determine if Dunkin City should build the road using B/C analysis. The cost of money is 8%.

Dunkin City wants to build a new bypass between two major roads that will cut travel time for commuters. The road will cost $14,000,000 and save 17,500 people $100/yr in gas. The road will need to be resurfaced every year at a cost of $7,500. The road is expected to be used for 20 years. Determine if Dunkin City should build the road using B/C analysis. The cost of money is 8%.

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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Concept explainers

Evaluation of Transportation Projects

Civil engineers undertake a variety of projects related to construction. Building construction projects, structural projects, highway, road construction projects, transportation projects, etc. Transportation projects are related to public constructions that focus to build new connectivity in public transportation. To improve and maintain existing transport facilities also falls under the domain of transportation projects. Some of its objectives include planning, evaluation, designing, development, finance, construction, reconstruction, demolition, rehabilitation, improvement, acquisition, operation, and maintenance. As per the law, all transport projects are authorized to the construction firm that permits them to change the land area meant for public use.

Question

Dunkin City wants to build a new bypass between two major roads that will cut travel time for

commuters. The road will cost $14,000,000 and save 17,500 people $100/yr in gas. The road will

need to be resurfaced every year at a cost of $7,500. The road is expected to be used for 20 years.

Determine if Dunkin City should build the road using B/C analysis. The cost of money is 8%.

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