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. Alternatives Capital Cost ($) Annual Maintence ($) Annual User Cost ($) Salvage Value ($) Present Condition 0 15,000 600,000 0 Traffic Signal 340,000 10,000 450,000 25,000 Intersection Widening 850,000 5,000 300,000 12,000 Grade Seperation 2,120,000 5,000 225,000 0
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. Alternatives Capital Cost ($) Annual Maintence ($) Annual User Cost ($) Salvage Value ($) Present Condition 0 15,000 600,000 0 Traffic Signal 340,000 10,000 450,000 25,000 Intersection Widening 850,000 5,000 300,000 12,000 Grade Seperation 2,120,000 5,000 225,000 0
Chapter2: Loads On Structures
Section: Chapter Questions
Problem 1P
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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.
| Alternatives | Capital Cost ($) | Annual Maintence ($) | Annual User Cost ($) | Salvage Value ($) |
| Present Condition | 0 | 15,000 | 600,000 | 0 |
| Traffic Signal | 340,000 | 10,000 | 450,000 | 25,000 |
| Intersection Widening | 850,000 | 5,000 | 300,000 | 12,000 |
| Grade Seperation | 2,120,000 | 5,000 | 225,000 | 0 |
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Step 1 Calcualtion of present worth for alternative 1(Traffic Signals)
VIEWStep 2 Calculation of present worth for alternative 2 (Intersection widening)
VIEWStep 3 Calculation for present worth of Alternative 3 (Grade Seperation)
VIEWStep 4 Deduction from present worth method
VIEWStep 5 Equivalent Annual Cost method
VIEWStep 6 Analysis from Benefit Cost Ratio method
VIEWStep 7 Analysis from rate of return method
VIEWStep 8 Analysis from rate of return method
VIEWStep 9 Conclusion
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