The Department of Traffic is considering three improvement plans for a heavily traveled road within the city. The road improvement is expected to achieve three goals: improve travel speeds, increase safety, and reduce operating expenses for motorists. The annual dollar value of savings compared with existing conditions for each criterion and additional construction and maintenance costs is shown in Table 1. If the economic life of the road is considered to be. ble 1: Cost and Benefits for Improvement Plans concerning Existing Conditions Alternative Construction Annual Annual Annual Annual Cost ($) Saving Cost Travel Time Operation Maintenance in Benefits($) Saving($) Cost($) Accidents($) 185.000 5000 3000 300 1500

The Department of Traffic is considering three improvement plans for a heavily traveled road within the city. The road improvement is expected to achieve three goals: improve travel speeds, increase safety, and reduce operating expenses for motorists. The annual dollar value of savings compared with existing conditions for each criterion and additional construction and maintenance costs is shown in Table 1. If the economic life of the road is considered to be. ble 1: Cost and Benefits for Improvement Plans concerning Existing Conditions Alternative Construction Annual Annual Annual Annual Cost ($) Saving Cost Travel Time Operation Maintenance in Benefits($) Saving($) Cost($) Accidents($) 185.000 5000 3000 300 1500

Traffic and Highway Engineering

5th Edition

ISBN:9781305156241

Author:Garber, Nicholas J.

Publisher:Garber, Nicholas J.

Chapter11: The Transportation Planning Process

Section: Chapter Questions

Problem 12P

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The Department of Traffic is considering three improvement plans for a heavily traveled intersection within the city. The intersection improvement is expected to achieve three goals: improve travel speeds, increase safety, and reduce operating expenses for motorists. The annual dollar value of savings compared with existing conditions for each criterion as well as additional construction and maintenancecosts is shown in the table below. If the economic life of the road is considered to be 60 years and the discount rate is 3.5%, which alternative should be selected? Solve the problem using the four methods for economic analysis.
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