Three transportation projects have been proposed to increase the safety in and around a residential neighborhood. Each project consists of upgrading existing street signing to highly retro reflective sheeting to increase visibility. The following table shows the initial construction costs, annual operating costs, useful life of the sheeting, and the salvage values for each alternative. Assume that the discount rate is 10%. Cal- culate the present worth for each alternative and determine the preferred project based on the economic criteria. Initial Anпual Salvage Value ($) Construction Operating Costs ($) Useful Life (Years) Alternative Costs ($) 2,000 1,200 12,000 12 2,500 II 10,000 3,500 III 16,000 2,250 5 800
Three transportation projects have been proposed to increase the safety in and around a residential neighborhood. Each project consists of upgrading existing street signing to highly retro reflective sheeting to increase visibility. The following table shows the initial construction costs, annual operating costs, useful life of the sheeting, and the salvage values for each alternative. Assume that the discount rate is 10%. Cal- culate the present worth for each alternative and determine the preferred project based on the economic criteria. Initial Anпual Salvage Value ($) Construction Operating Costs ($) Useful Life (Years) Alternative Costs ($) 2,000 1,200 12,000 12 2,500 II 10,000 3,500 III 16,000 2,250 5 800
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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