A state highway department is planning the all road. It estimates that the construction cost (t = 0) will be $200M and maintenance costs will be $IM per year. In addition, every 20 years, a major res will have to be carried out at a cost of $25M. It is estimated that 6 million cars and ucks will use the road cach year, and it is decided that the toll charged to a truc times that of a car. The interest rate is 7%. Determine what the toll should be for each car and truck to cover all expenses for a eriod of 40 years. Assume the toll being charged and the estimated traffic flow

Structural Analysis
6th Edition
ISBN:9781337630931
Author:KASSIMALI, Aslam.
Publisher:KASSIMALI, Aslam.
Chapter2: Loads On Structures
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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.
Transcribed Image Text: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.
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