Q2) The state highway department is considering (2) proposals routes for anew highway. Listed below are the estimated construction costs (investment) per km, the annual disbursement (users and maintance) cost per km, the useful life and the salvage value for each one associated with each route. If the (M.A.R.R) is (10%), which highway proposals route is most desirable show that by using (P.W.C) method. First cost Useful life Salvage value(million I.D) Annual disbursement (million 1.D) Proposal(2) 80 Proposal (1) 90 20 15 0 5 1 1.5
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- A toll bridge carries 6000 vch/day The current toll is $3.50/vehicle. Studies have shown hat for each increase in toll of 50 cents, the traffic volume will decrease by 500 veh/day. Jus desired to increase the toll to a point where revenue will be maximized. (a) Write the expression for travel demand on the bridge, related to toll increase and current volume. (b) Determine the toll charge to maximize revenbes. (o Determine traffic in vel/day after the loll increase, (d) Determine the total revente increase with the new tol.Reynold, Joshua, Dennis and Rogers Consulting Group has a contract to design a major highway project that will provide service from San Fernando to sudipen, La Union. The Consulting Group has been requested to provide an estimated B/C ratio for the project. Relevant data are: initial cost: 20,750,000.00 Pesos Right of way maintenance: 550,000.00 Pesos Resurfacing every 8 years: 10% of first cost Shoulder grading and re-work (every 6 years): 750,000.00 Pesos Average number of road users per year: 2,950,000 Average time savings value per road user: 2.00 Pesos Determine the B/C ratio if i = 8%.The Department of Traffic is considering three improvement plans for a heavily traveled intersection within the city. The intersection improvement is expected to achieve three goals: improve travel speeds, increase safety, and reduce operating expenses for motorists. The annual dollar value of savings compared with existing conditions for each criterion as well as additional construction and maintenancecosts is shown in the table below. If the economic life of the road is considered to be 60 years and the discount rate is 3.5%, which alternative should be selected? Solve the problem using the four methods for economic analysis.
- The demand and supply function for a bridge are the following where C is cost in cents and V is volume in veh / h . Demand V = 1500 - 10C Supply or cost function: C = 120 + 0.5V (a) What is the equilibrium volume of traffic and the associated cost? (b) 20 cents of toll is added to the cost function, what will be the new cost function and the equilibrium volume?Rash, Riley, Reed, and Rogers Consulting has a contract to design a major highway project that will provide service from Memphis to Tunica, Mississippi. R* has been requested to provide an estimated B/C ratio for the project. Relevant data are: Initial cost Right of way maintenance Resurfacing (every 8 years) Shoulder grading and re-work (every 6 years) $20,750,000 550,000 10% of first cost 750,000 Average number of road users per year Average time savings value per road user 2,950,000 $2 Determine the B/C ratio if i= 8%.Consider the following project network. Determine the critical path and the project duration. E H Start Finish 8. B4 A2
- Dunkin City wants to build a new bypass between two major roads that will cut travel time for commuters. The road will cost $14,000,000 and save 17,500 people $100/yr in gas. The road will need to be resurfaced every year at a cost of $7,500. The road is expected to be used for 20 years. Determine if Dunkin City should build the road using B/C analysis. The cost of money is 8%.A bridge has been constructed between the mainland and an island. The total cost (excluding tolls) to travel across the bridge is expressed as C- 50 + 0.5V, where V is the number of veh/hr and Cis the cost/vehicle in cents. The demand for travel across the bridge is V- 2500 - 10C. (a) Determine the volume of traffic across the bridge. (b) If a toll of 25 cents is added, what is the volume across the bridge? What volume would be expected with a 50 cent increase? 155 (c) A tollbooth is to be added, thus reducing the travel time to cross the bridge. The new cost function is C- 50 + 0.2V. Determine the volume of traffic that would cross the bridge. (d) Determine the toll to yield the highest revenue for demand and supply function in part (a), and the associated demand and revenueA 40km gravel surfaced road on a reasonably good alignment, is now carrying an annual average daily traffic of 100 vehicles (10% trucks). The traffic is expected to grow at an annual rate of 5% compounded (for each road type and all vehicles). The minimum attractive rate of return is 10% per annum. It is proposed to pave the road with minor reconstruction and the rest of the project details are shown in Table 1 below. Determine the benefits and costs after the year of paving
- Need asaapPlease explain13.9. From past records of highway construction and maintenance costs, a state highway de- partment determines the following cost relationships for two-lane bituminous high- ways within the state: c(x) = 0.1.x20 Cm(x) = 3.0-¹ X where the equations hold for (0.5 ≤ x ≤ 10.0) and where x= pavement thickness (inches); c(x)= annualized construction cost (millions of dollars per mile per year); and C(x)= annual maintenance cost (millions of dollars per mile per year). (a) In words, describe the basic tradeoff decision that the highway department must make. (b) Determine the optimal pavement thickness, justifying the type of point found. (c) If pavement thickness can be specified only in whole inches, what is the best pave- ment thickness, considering normal variance in pavement thickness caused by field construction conditions? How sensitive is the optimal cost to small changes in thickness?