Estimated Cost Alternatives (present value) Useful life Element Year A B Row 40 $0 $40,000 $60,000 Grading 40 $50,000 $320,000 $420,000 Structures 40 $30,000 $220,000 $370,000 Pavement $40,000 $340,000 $280,000 Distance 13 miles 8 miles 7.5 miles Annual Maintenance $1000/mile for all alternatives Total Road user costs (annual) $ 261,000 $ 181,000 $ 170,000 By use of the benefit-cost method determine which of the three alternatives should be recommended, if A- Alternative B- C- any. 40 years, 8% interest = 0.08386 20 years, 8% interest = 0.10185 CRF=(A/P) for 20

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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A highway department is considering three alternative routes between two locations. The
rate of interest is 8%. 

Estimated
Cost Alternatives (present value)
Useful life
Element
Year
A
B
C
Row
40
$0
$40,000
$60,000
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
$1000/mile for all alternatives
Total Road user costs (annual)
$ 261,000
$ 181,000
$ 170,000
By use of the benefit-cost method determine which of the three alternatives should be recommended, if
А-
Alternative
В-
C-
any.
40 years, 8% interest = 0.08386
20 years, 8% interest = 0.10185
CRF=(A/P) for
Transcribed Image Text:Estimated Cost Alternatives (present value) Useful life Element Year A B C Row 40 $0 $40,000 $60,000 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 $1000/mile for all alternatives Total Road user costs (annual) $ 261,000 $ 181,000 $ 170,000 By use of the benefit-cost method determine which of the three alternatives should be recommended, if А- Alternative В- C- 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?.
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?
Transcribed Image Text: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?. 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?
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