6. There are five alternatives for improvement of a road. Determine which alternative should be chosen if the highway department is willing to invest money as long as there is a B/C ratio of at least 1.00. Alternatives Annual Benefits, P 950,000 1,400,000 2,850,000 3,400,000 4,250,000 Annual Cost, P 1,050,000 1,500,000 2,150,000 2,800,000 3,450,000 1 2 3 4
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- 3. 8.5 Two different routes are under consideration for a new interstate highway: Table P8.5 The "long" route Transmountain shortcut Length of Highway 22 miles First Cost $21 million 10 miles 10 miles $45 million Annual Upkeep $140,000 $165.000 Table P8.5 Full Alternative Text For either route, the volume of traffic will be 400,000 cars per year. These cars are assumed to operate at $0.25 per mile. Assume a 40-year life for each road and an interest rate of 10%. Determine which route should be selected.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.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.
- 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? %3DDunkin 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%.Incorrect Question 3 Which is not a sources for Highway Funds? Gasoline Tax * Adopt A Highway Program Tolls Traffic Fines General Income Tax License and Registration Fees
- 1. From the given data, determine the Net Present Value of a Road rehabilitation project. Number of years =5 yrs.; discounted rate = 5% (real discount rates, pesos). Year 1 2 3 4 5 Benefits 65,000 65,000 65,000 65,000 (B) Cost (C) 130,000 25,000 15,000 10,000 7,000 a) 43,797 b) 51,234 c) 48,244 d) 44,456 2. If the spot speeds are 57, 48, 65, 58, 70 and 52 Kph, find the time mean speed and space mean speed. a)55.45 b) 56.67 c) 58.33 d) 57.42 3. The following travel times were observed for five vehicles traveling on a 1 km segment of SLEX. It is required to estimate the time mean speed. Vehicle Time, min 1 1.10 2 1.15 3 1.22 4 1.32 1.12 a)48 kph b)51 kph c) 53 kph d)57 kphC) 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)Reynold, Joshua, Dennis and Rogers Consulting Group has a contract to design a major highway project that will provide service from San Fernando to sudipen, La Union. The Consulting Group has been requested to provide an estimated B/C ratio for the project. Relevant data are: initial cost: 20,750,000.00 Pesos Right of way maintenance: 550,000.00 Pesos Resurfacing every 8 years: 10% of first cost Shoulder grading and re-work (every 6 years): 750,000.00 Pesos Average number of road users per year: 2,950,000 Average time savings value per road user: 2.00 Pesos Determine the B/C ratio if i = 8%.
- A county transportation agency has asked you to suggest the allocation of bridge preservation budget of 50 million between Interstate and non-Interstate highway bridges. Political considerations require that urban populations receive at least $25 million in benefits and rural areas at least $10 million. As a rule of thumb, a $1 million investment yields total user benefits of $1.25 million for $1 million spent on Interstate highway bridges $1 million for $1 million spent on non-Interstate highway bridges Your research also indicates that the distribution of benefits for each highway isRash, 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%.The demand and supply function for a bridge are the following where C is cost in cents and V is volume in veh / h . Demand V = 1500 - 10C Supply or cost function: C = 120 + 0.5V (a) What is the equilibrium volume of traffic and the associated cost? (b) 20 cents of toll is added to the cost function, what will be the new cost function and the equilibrium volume?