Baguio City wants to build a new bypass between two major roads that will cut travel time for commuters. The road will cost 140,000,000 pesos and save 17500 people 1000 pesos/yr in gas. The road will need to be resurfaced every year at a cost of 75,000. The road is expected to be used for 20 years. Determine if Baguio City should build the road using B/C analysis. The cost of money is 8%.

Baguio City wants to build a new bypass between two major roads that will cut travel time for commuters. The road will cost 140,000,000 pesos and save 17500 people 1000 pesos/yr in gas. The road will need to be resurfaced every year at a cost of 75,000. The road is expected to be used for 20 years. Determine if Baguio City should build the road using B/C analysis. The cost of money is 8%.

Traffic and Highway Engineering

5th Edition

ISBN:9781305156241

Author:Garber, Nicholas J.

Publisher:Garber, Nicholas J.

Chapter2: Transportation Systems And Organizations

Section: Chapter Questions

Problem 3P

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