Traffic and Highway Engineering
5th Edition
ISBN: 9781305156241
Author: Garber, Nicholas J.
Publisher: Cengage Learning
expand_more
expand_more
format_list_bulleted
Concept explainers
Question
Chapter 13, Problem 17P
To determine
The most cost-effective alternative based on equivalent annual cost by showing cash flow diagram.
Expert Solution & Answer
Want to see the full answer?
Check out a sample textbook solution
Students have asked these similar questions
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)
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 $7,500. The road is expected to be used for 20 years.
Determine if Dunkin City should build the road using B/C analysis. The cost of money is 8%.
A road is being proposed to facilitate a housing development on a scenic Two alternatives have been suggested. One of the roadway alignments is to go around the lake and slightly impact a wetland. The second alternative will also go around the lake and will significantly impact two wetlands. The following table shows the anticipated costs for each alternative. Assuming that the annual interest rate (i) is 7%, determine which alternative is preferred using the Net Present Value method.
Alternative
First Cost ($)
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
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, civil-engineering and related others by exploring similar questions and additional content below.Similar questions
- III. 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_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_forwardTwo 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 $85,000arrow_forward
- The Department of Traffic is considering three improvement plans for a heavily traveled intersection within the city. The intersection 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 as well as additional construction and maintenancecosts is shown in the table below. If the economic life of the road is considered to be 60 years and the discount rate is 3.5%, which alternative should be selected? Solve the problem using the four methods for economic analysis.arrow_forwardThree designs have been proposed to improve traffic flow at a major intersection in a heavily traveled suburban area. The first alternative involves improved traffic signaling. The second alternative includes traffic-signal improvements and intersection widening for exclusive left turns. The third alternative includes extensive reconstruction, including a grade separation structure. The construction costs, as well as annual maintenance and user costs, are listed in the following table for each alternative. Determine which alternative is preferred based on economic criteria if the analysis period is 20 years and the annual interest rate is 15%. Show that the result is the same using the present worth, equivalent annual cost, benefit–cost ratio, and rate-of-return methods.arrow_forwardThree designs have been proposed to improve traffic flow at a major intersection in a heavily traveled suburban area. The first alternative involves improved traffic signaling. The second alternative includes traffic-signal improvements and intersection widening for exclusive left turns. The third alternative includes extensive reconstruction, including a grade separation structure. The construction costs, as well as annual maintenance and user costs, are listed in the following table for each alternative. Determine which alternative is preferred based on economic criteria if the analysis period is 20 years and the annual interest rate is 15%. Show that the result is the same using the present worth, equivalent annual cost, benefit–cost ratio, and rate-of-return methods. Alternatives Capital Cost ($) Annual Maintence ($) Annual User Cost ($) Salvage Value ($) Present Condition 0 15,000 600,000 0 Traffic Signal 340,000 10,000 450,000 25,000 Intersection Widening 850,000 5,000…arrow_forward
- The 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_forwardRash, Riley, Reed, and Rogers Consulting has a contract to design a major highway project that will provide service from Memphis to Tunica, Mississippi. R* has been requested to provide an estimated B/C ratio for the project. Relevant data are: Initial cost Right of way maintenance Resurfacing (every 8 years) Shoulder grading and re-work (every 6 years) $20,750,000 550,000 10% of first cost 750,000 Average number of road users per year Average time savings value per road user 2,950,000 $2 Determine the B/C ratio if i= 8%.arrow_forwardThe 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?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_forwardDevelop a detailed analytical framework using life-cycle cost analysis of a freeway system operation improvement project, such as a project for varying freeway speed limits in the range of 45- 70 mph for different locations and time periods of a typical working day.arrow_forwardA 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_forward
arrow_back_ios
SEE MORE QUESTIONS
arrow_forward_ios
Recommended textbooks for you
Traffic and Highway EngineeringCivil EngineeringISBN:9781305156241Author:Garber, Nicholas J.Publisher:Cengage Learning
Fundamentals Of Construction EstimatingCivil EngineeringISBN:9781337399395Author:Pratt, David J.Publisher:Cengage,
Traffic and Highway Engineering
Civil Engineering
ISBN:9781305156241
Author:Garber, Nicholas J.
Publisher:Cengage Learning
Fundamentals Of Construction Estimating
Civil Engineering
ISBN:9781337399395
Author:Pratt, David J.
Publisher:Cengage,