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 maintenance costs 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 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 maintenance costs 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.
Chapter2: Loads On Structures
Section: Chapter Questions
Problem 1P
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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 maintenance
costs 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.
![Annual Saving in
Accidents, $
Annual Travel Time Annual Operating
Savings, $
Annual Additional
Alternative
Construction Cost, $
Benefits, $
Maintenance Cost, $
3D
205.000
5,500
3.300
600
1.500
230.000
5,000
6,800
750
2.600
315.000
7,500
6,000
3,100
3,000
Draw the Cash Flow Diagram of this given table. Then,
Solve by the EUAW method.
EUAW: - ISelect)
EUAW2"
( Select )
EUAWa- ISelect]
The project with the highest EUAW is alternative (Select)
>
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Transcribed Image Text:Annual Saving in
Accidents, $
Annual Travel Time Annual Operating
Savings, $
Annual Additional
Alternative
Construction Cost, $
Benefits, $
Maintenance Cost, $
3D
205.000
5,500
3.300
600
1.500
230.000
5,000
6,800
750
2.600
315.000
7,500
6,000
3,100
3,000
Draw the Cash Flow Diagram of this given table. Then,
Solve by the EUAW method.
EUAW: - ISelect)
EUAW2"
( Select )
EUAWa- ISelect]
The project with the highest EUAW is alternative (Select)
>
>
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