Traffic and Highway Engineering
5th Edition
ISBN: 9781305156241
Author: Garber, Nicholas J.
Publisher: Cengage Learning
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Chapter 13, Problem 13P
To determine
The best alternative by using present worth analysis.
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Two alternatives are under consideration for maintenance of a bridge. Select the mostcost-effective alternative using present worth analysis. Assume an interest rate of10% per year and a design life of 50 years for each alternative.Alternative A consists of annual maintenance costs of $5,000 per year for the designlife except for:Year 20, in which bridge deck repairs will cost $20,000Year 30, in which a deck overlay and structural repairs will cost $105,000Alternative B consists of annual maintenance costs of $3,000 per year for the designlife except for:Year 20, in which bridge deck repairs will cost $35,000Year 30, in which a deck overlay and structural repairs will cost $85,000
The proposed steel bridge has an indefinite life. The initial cost of the bridge is $3,750,000 and annual maintenance costs are estimated to be $25,000. The bridge deck will be resurfaced every 10 years for $900,000 and anti-corrosion paint will be applied every 5 years for $250,000. If the interest rate is 8%, what is the EUAC?
A road is being proposed to facilitate a housing development on a scenic Two alternatives have been suggested. One of the roadway alignments is to go around the lake and slightly impact a wetland. The second alternative will also go around the lake and will significantly impact two wetlands. The following table shows the anticipated costs for each alternative. Assuming that the annual interest rate (i) is 7%, determine which alternative is preferred using the Net Present Value method.
Alternative
First Cost ($)
Annual Maintenance ($)
Service Life (Years)
Salvage Value ($)
Annual Wetland Rehabilitation
Costs ($)
Annual Roadway Lighting
Costs ($)
I
75,000
3000
15
45,000
7500
1500
II
125,000
2000
15
25,000
2500
2500
Chapter 13 Solutions
Traffic and Highway Engineering
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- C) Two alternatives have been proposed to construct a new road project to improve capacity and safety. The table below explains each alternative's costs: the initial construction costs, annual operating and maintenance costs after the first year, and resurface of road costs. Assume that the annual interest rate is 5%. Determine the present worth for each alternative, then choose the preferred alternative based on the economic criteria. by present worth Alternative The initial construction costs The annual operating and maintenance costs The resurface costs Service life (years) $4.000.000 $3.900 $850,000 (Every five years) 14 $3,800,000 $4,100 $800.000 (Every four years)arrow_forwardThe London Millennium Bridge project cost about GBP18.2 million to build (about GBP 2.2 million over budget). The bridge was opened on 10th June 2000 and closed 3 days later due to defects. An additional GBP 5million was needed for the modification & repair works and finally re-opened in February 2002. From the project management point of view, use the triple constraint to gauge the project's success (construct & state the factors in the triple constraint. Is the project a success? (Include justification based on your understanding)arrow_forwardDunkin 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%.arrow_forward
- The initial investment for constructing a median and guardrails for a prestressed concrete bridge is $1000000. Maintaining these facilities is expected to cost $2000 annually for the first five years of service and $10000 for the next five years of service. It is expected that these facilities will be rehabilitated at the end of the tenth year at a cost of $60000, after which the maintenance costs are expected to decrease to $6000 per year. What is equivalent uniform annual cost over a 15 -year period of service if the interest rate is 6% per year?arrow_forwardDuring an investigation of a bridge collapse, you will investigate another similar bridge, and find it to be only marginally safe. You contact the governmental agency responsible for the bridge and inform them of your concern for the safety of the structure. You were told that the agency is aware of this situation and has planned to provide in next year’s budget for its repair. Until then, the bridge must remain open to traffic. Without this bridge, emergency vehicles such as police and fire apparatus would have to use an alternate route that would increase their response time by approximately twenty minutes. You are thanked for your concern and asked to say nothing about the condition of the bridge. The agency is confident that the bridge will be safe.arrow_forwardCase Study During an investigation of a bridge collapse, Engineer A investigates another similar bridge, and finds it to be only marginally safe. He contacts the governmental agency responsible for the bridge and informs them of his concern for the safety of the structure. He is told that agency is aware of this situation and has planned to provide in next year’s budget for its repair. Until then, the bridge must remain open to traffic. Without this bridge, emergency vehicles such as police and fire apparatus would have to use an alternate route that would increase their response time by approximately twenty minutes. Engineer A is thanked for his concern and asked to say nothing about the condition of the bridge. The agency is confident that the bridge will be safe. Analyse the case using the six steps with the perspective of Engineer Aarrow_forward
- A city engineer has estimated the annual toll revenues from a proposed highway construction project over 20 years as follows: An = ($2,000,000)(n)(l.06)n-1 n = 1.2 .... ,20.To determine the amount of debt financing through bonds, the engineer was asked to present the estimated total present value of toll revenue at an interest rate of 6%. Assuming annual compounding, find the present value of the estimated toll revenue.arrow_forward3- The maintenance costs for a bridge with an expected 50 years life are estimated to be ($10,000,000) each year for the first 5 years, followed by ($50,000,000) other costs at year 15, and ($75,000,000) at the year 30, if ( i 10%), what is the annual uniform cost over the entire 50 years? %3D 4- A firm is considering three mutually exclusive alternatives as part of a production improvement program. The alternatives are: Alternative A (i=12%) B (i=10%) C (i=15%) Installation Cost (U) 200,000 270,000 190,000 Uniform Annual 30,750 40,500 30,250 Benefit (U) Useful life in years 12 14 15 Which of the above should be chosen?arrow_forwardEngineers are designing a new bridge to replace a 100-year-old bridge that has fallen into disrepair due to increased traffic and weathering. Describe a consideration that a computer model could help engineers analyze in order to develop the design. Describe one possible criterion and one possible constraint of the design of the new bridge.arrow_forward
- Case Study for Professional Ethics. During an investigation of a bridge collapse, Engineer A investigates another similar bridge, and finds it to be only marginally safe. He contacts the governmental agency responsible for the bridge and informs them of his concern for the safety of the structure. He is told that agency is aware of this situation and has planned to provide in next year’s budget for its repair. Until then, the bridge must remain open to traffic. Without this bridge, emergency vehicles such as police and fire apparatus would have to use an alternate route that would increase their response time by approximately twenty minutes. Engineer A is thanked for his concern and asked to say nothing about the condition of the bridge. The agency is confident that the bridge will be safe. Analyse the case using the six steps with the perspective of Engineer A.arrow_forwardThe Department of Traffic is considering three improvement plans for a heavily traveled road within the city. The road improvement is expected to achieve three goals: improve travel speeds, increase safety, and reduce operating expenses for motorists. The annual dollar value of savings compared with existing conditions for each criterion and additional construction and maintenance costs is shown in Table 1. If the economic life of the road is considered to be 53 years and the discount rate is 4%, which alternative should be selected? Evaluate the two proposals based on economic evaluation criteria using the Net Present Worth (NPW) and benefit-cost ratio (BCR) methods for economic analysis.arrow_forwardIII. A state highway department is planning the construction of a 50 mile, four-lane toll road. It estimates that the construction cost (t = 0) will be $200M and annual maintenance costs will be $IM per year. In addition, every 20 years, a major resurfacing will have to be carried out at a cost of $25M. It is estimated that 6 million cars and 400,000 trucks will use the road cach year, and it is decided that the toll charged to a truck will be 4 times that of a car. The interest rate is 7%. I Determine what the toll should be for each car and truck to cover all expenses for a planning period of 40 years. Assume the toll being charged and the estimated traffic flows do not vary year-to-year.arrow_forward
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