A proposed 10-mile, 4-lane road widening project is worth 3.5 million. The existing daily traffic is 20,000
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A proposed 10-mile, 4-lane road widening project is worth 3.5 million. The existing daily traffic is 20,000 in the 3-hour peak period. After the widening, daily traffic will be increased by 20%. Assume 250 days per year. Average speed will increase from 40 to 50 mph. Energy use will go from an average of 28 mpg to 23 mpg. The annual maintenance cost is $125,000. Assume that the time value is $20 per hour and gasoline costs $3 per gallon, the service life is 30 years and the discount rate is 5%. Compute the net present worth, benefit-to-cost-ratio, and equivalent uniform annual benefits of the project.
Related Book For
Fundamentals of Advanced Accounting
ISBN: 978-0077862237
6th edition
Authors: Joe Ben Hoyle, Thomas Schaefer, Timothy Doupnik
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