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 is

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 is

Traffic and Highway Engineering

5th Edition

ISBN:9781305156241

Author:Garber, Nicholas J.

Publisher:Garber, Nicholas J.

Chapter13: Evaluating Transportation Alternatives

Section: Chapter Questions

Problem 13P

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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%.
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Payback Period Method and Benefit-Cost Ratio Method
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