Three 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. This table presents a cost analysis comparing different transportation infrastructure alternatives, highlighting the associated costs and estimated values for each option.### Table Description#### Column Headers:- **Alternative**: Represents different strategies for traffic management and road infrastructure.- **Capital Costs ($)**: Initial investment required for the implementation of each alternative.- **Annual Maintenance Costs ($)**: Yearly costs incurred to maintain the infrastructure.- **Annual User Costs ($)**: Costs borne by users annually, potentially reflecting fuel consumption, time delays, and wear on vehicles.- **Salvage Value ($)**: The estimated residual value at the end of the infrastructure's useful life.#### Alternatives:1. **Present Condition:** - **Capital Costs**: $0 - **Annual Maintenance Costs**: $15,000 - **Annual User Costs**: $600,000 - **Salvage Value**: $02. **Traffic Signals:** - **Capital Costs**: $340,000 - **Annual Maintenance Costs**: $10,000 - **Annual User Costs**: $450,000 - **Salvage Value**: $25,0003. **Intersection Widening:** - **Capital Costs**: $850,000 - **Annual Maintenance Costs**: $5,000 - **Annual User Costs**: $300,000 - **Salvage Value**: $12,0004. **Grade Separation:** - **Capital Costs**: $2,120,000 - **Annual Maintenance Costs**: $5,000 - **Annual User Costs**: $225,000 - **Salvage Value**: $0### Analysis ExplanationThe table allows for a comparative analysis of different strategies based on their cost implications and potential savings. It provides a comprehensive overview for decision-makers to evaluate whether the long-term benefits outweigh the initial investment. Each alternative presents varied costs, reflecting different levels of efficiency and user convenience.

Given data: Analysis period (n)= 20 years Annual interest rate (i)= 15% =0.15 So, Interest and…

Answered: Capital Costs Annual ($) Annual User…

Structural Analysis

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ISBN:9781337630931

Author:KASSIMALI, Aslam.

Publisher:KASSIMALI, Aslam.

Chapter2: Loads On Structures

Section: Chapter Questions

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Three 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.

This table presents a cost analysis comparing different transportation infrastructure alternatives, highlighting the associated costs and estimated values for each option.

### Table Description

#### Column Headers:
- **Alternative**: Represents different strategies for traffic management and road infrastructure.
- **Capital Costs ($)**: Initial investment required for the implementation of each alternative.
- **Annual Maintenance Costs ($)**: Yearly costs incurred to maintain the infrastructure.
- **Annual User Costs ($)**: Costs borne by users annually, potentially reflecting fuel consumption, time delays, and wear on vehicles.
- **Salvage Value ($)**: The estimated residual value at the end of the infrastructure's useful life.

#### Alternatives:
1. **Present Condition:**
- **Capital Costs**: $0
- **Annual Maintenance Costs**: $15,000
- **Annual User Costs**: $600,000
- **Salvage Value**: $0

2. **Traffic Signals:**
- **Capital Costs**: $340,000
- **Annual Maintenance Costs**: $10,000
- **Annual User Costs**: $450,000
- **Salvage Value**: $25,000

3. **Intersection Widening:**
- **Capital Costs**: $850,000
- **Annual Maintenance Costs**: $5,000
- **Annual User Costs**: $300,000
- **Salvage Value**: $12,000

4. **Grade Separation:**
- **Capital Costs**: $2,120,000
- **Annual Maintenance Costs**: $5,000
- **Annual User Costs**: $225,000
- **Salvage Value**: $0

### Analysis Explanation
The table allows for a comparative analysis of different strategies based on their cost implications and potential savings. It provides a comprehensive overview for decision-makers to evaluate whether the long-term benefits outweigh the initial investment. Each alternative presents varied costs, reflecting different levels of efficiency and user convenience.

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