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Please solve this question it is transportation course

Please solve this question it is transportation course

Structural Analysis
Structural Analysis
6th Edition
ISBN:9781337630931
Author:KASSIMALI, Aslam.
Publisher:KASSIMALI, Aslam.
Chapter2: Loads On Structures
Section: Chapter Questions
Problem 1P
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Please solve this question it is transportation course 

A state government has a plan to construct a 15 km road. The project cost is estimated to be RM 770,000,000.00 within duration of 2 years. Direct benefits of the proposed road are reduction in vehicle operating cost and travel times which are estimated to be 1,212,000 vehicle-km/day and 27,750 men-hr/day. The average travel time value is RM 11.15/hr and the vehicle operating cost is 21.5 cents per kilometer. Both reductions are forecasted to be increasing steadily at the rate of 7% per annum. Road maintenance cost is estimated to be RM 2,500,000 per annum and will keep on increasing at the rate of 10.5% per annum. The project will be financed by the federal government and the payback period is 6 years. The discount rate is 8%. Calculate the Benefit-Cost Ratio and justify whether this project viable or not.
Transcribed Image Text:A state government has a plan to construct a 15 km road. The project cost is estimated to be RM 770,000,000.00 within duration of 2 years. Direct benefits of the proposed road are reduction in vehicle operating cost and travel times which are estimated to be 1,212,000 vehicle-km/day and 27,750 men-hr/day. The average travel time value is RM 11.15/hr and the vehicle operating cost is 21.5 cents per kilometer. Both reductions are forecasted to be increasing steadily at the rate of 7% per annum. Road maintenance cost is estimated to be RM 2,500,000 per annum and will keep on increasing at the rate of 10.5% per annum. The project will be financed by the federal government and the payback period is 6 years. The discount rate is 8%. Calculate the Benefit-Cost Ratio and justify whether this project viable or not.
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