Transportation engineering A highway department is considering three alternative routes between two locations. Therate of interest is 8%.EstimatedCost Alternatives (present value)Useful lifeElementYearARow40$ 0$40,000$60,000Grading40$50,000$320,000$420,000Structures40$30,000$220,000$370,000Pavement20$40,000$340,000$280,000Distance13 miles8 miles7.5 milesAnnual Maintenance$1000/mile for all alternativesTotal Road user costs (annual)$ 261,000$ 181,000$ 170,000By use of the benefit-cost method determine which of the three alternatives should be recommended, ifA -AlternativeВ-С-any.40 years, 8% interest = 0.0838620 years, 8% interest = 0.10185CRF=(A/P) forAnswer the following questions:a) What is the annual cost of alternative A?b) What is the annual cost of alternative B?c) What is the annual cost of alternative C?d) What is the saving or benefit of alternative B compare to A?e) What is the saving or benefit of alternative C compare to A?f) What is the saving or benefit of alternative C compare to B?g) Using B/C ratio which alternative is better B vs A?h) Using B/C ratio which alternative is better B vs C?i) Using B/C ratio which alternative is better C vs A?j) Using B/C ratio which alternative is the best among all alternatives?

A highway department is considering three alternative routes between two locations. The 'rate of interest is 8%. Estimated Cost Altematives (present value) Useful life Element Year A в Row 40 $0 $40,000 S60,000 Grading 40 $50,000 $320,000 $420,000 Structures 40 $30,000 $220,000 $370,000 Pavement 20 $40,000 $340,000 $280,000 Distance 13 miles 8 miles 7.5 miles Annual Maintenance s1000/mile for all alternatives Total Road user costs (annual) $ 261,000 $ 181,000 C. $170,000 A- Alternative B- By use of the benefit-cost method determine which of the three altematives should be recommended, if any. 40 years, 8% interest 0.08386 20 years, 8% interest 0.10185 CRF=(A/P) for Answer the following questions: a) What is the annual cost of alternative A? b) What is the annual cost of alternative B? c) What is the annual cost of alternative C?

A highway department is considering three alternative routes between two locations. The 'rate of interest is 8%. Estimated Cost Altematives (present value) Useful life Element Year A в Row 40 $0 $40,000 S60,000 Grading 40 $50,000 $320,000 $420,000 Structures 40 $30,000 $220,000 $370,000 Pavement 20 $40,000 $340,000 $280,000 Distance 13 miles 8 miles 7.5 miles Annual Maintenance s1000/mile for all alternatives Total Road user costs (annual) $ 261,000 $ 181,000 C. $170,000 A- Alternative B- By use of the benefit-cost method determine which of the three altematives should be recommended, if any. 40 years, 8% interest 0.08386 20 years, 8% interest 0.10185 CRF=(A/P) for Answer the following questions: a) What is the annual cost of alternative A? b) What is the annual cost of alternative B? c) What is the annual cost of alternative C?

Traffic and Highway Engineering

5th Edition

ISBN:9781305156241

Author:Garber, Nicholas J.

Publisher:Garber, Nicholas J.

Chapter13: Evaluating Transportation Alternatives

Section: Chapter Questions

Problem 10P

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