Traffic and Highway Engineering
5th Edition
ISBN: 9781305156241
Author: Garber, Nicholas J.
Publisher: Cengage Learning
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Chapter 13, Problem 16P
To determine
The most cost-effective alternative using present worth analysis.
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3- 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
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)
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 $250,000. If the interest rate is 8%, what is the EUAC?
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Traffic and Highway Engineering
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- A road is being proposed to facilitate a housing development on a scenic Two alternatives have been suggested. One of the roadway alignments is to go around the lake and slightly impact a wetland. The second alternative will also go around the lake and will significantly impact two wetlands. The following table shows the anticipated costs for each alternative. Assuming that the annual interest rate (i) is 7%, determine which alternative is preferred using the Net Present Value method. Alternative First Cost ($) 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 2500arrow_forwardThe 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_forwardA reconstruction project of a 10-mile 4-lane concrete highway is proposed for next year. The initial cost per lane-mile is estimated to be $271000 with zero salvage value at the end of its service life of 30 years. The annual maintenance cost is expected to be $2710 per lane-mile. For a discount rate of 5.3%, compute the equivalent uniform annual cost.arrow_forward
- The cost of resurfacing a stretch of highway with asphalt is $7,000,000 and the annual maintenance is $275,000. If concrete resurfacing is used, the cost is $9,750,000 and the annual maintenance is $65,000. Which alternative should be adopted for a 30-year term with a discount rate of 5%?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_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 $7,500. The road is expected to be used for 20 years. Determine if Dunkin City should build the road using B/C analysis. The cost of money is 8%.arrow_forward
- Three transportation projects have been proposed to increase the safety in and around a residential neighborhood. Each project consists of upgrading existing street signing to highly retroreflective sheeting to increase visibility. The following table shows the initial construction costs, annual operating costs, useful life of the sheeting, and the salvage values for each alternative. Assume that the discount rate is 8%. Calculate the present worth for each alternative and determine the preferred project based on the economic criteria. Alternatives Initial Construction Cost($) Annual Operations and Maintenance Cost ($) Useful Life (Years) Salvage Value ($) 1 19,000 2,500 10 3,000 2 8,000 4,000 5 900 3 20,000 2,500 10 4,600arrow_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_forwardThree transportation projects have been proposed to increase the safety in and around a residential neighborhood. Each project consists of upgrading existing street signing to highly retroreflective sheeting to increase visibility. The following table shows the initial construction costs, annual operating costs, useful life of the sheeting, and the salvage values for each alternative. Assume that the discount rate is 8%. Calculate the present worth for each alternative and determine the preferred project based on the economic criteria. Discount Rate: 8%arrow_forward
- During 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_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_forwardThe AW values of three revenue alternatives are $-23,000 for A, $-21,600 for B, and $-27,300 for C. On the basis of these AW values, the correct decision is to:a. select alternative A.b. select alternative B.c. select alternative C.d. select the do nothing alternative.arrow_forward
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