C) Two alternatives have been proposed to construct a new road project to improve capacity and safety. The table below explains each alternative's costs: the initial construction costs, annual operating and maintenance costs after the first year, and resurface of road costs. Assume that the annual interest rate is 5%. Determine the present worth for each alternative, then choose the preferred alternative based on the economic criteria. by present worth Alternative The initial construction costs The annual operating and maintenance costs The resurface costs Service life (years) 1 $4,000,000 $3,900 $850,000 (Every five years) 14 $3,800,000 $4,100 $800,000 (Every four years)
C) Two alternatives have been proposed to construct a new road project to improve capacity and safety. The table below explains each alternative's costs: the initial construction costs, annual operating and maintenance costs after the first year, and resurface of road costs. Assume that the annual interest rate is 5%. Determine the present worth for each alternative, then choose the preferred alternative based on the economic criteria. by present worth Alternative The initial construction costs The annual operating and maintenance costs The resurface costs Service life (years) 1 $4,000,000 $3,900 $850,000 (Every five years) 14 $3,800,000 $4,100 $800,000 (Every four years)
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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