CHRISTIAN JOHN A.

SALUDAR
BS-CIVIL ENGINEERING 3A
PRINCIPLES OF TRANSPORTATION ENGINEERING

13-10) 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%. Calculate the
present worth for each alternative and determine the preferred project based on the
economic criteria.

13-12) Three designs have been proposed to improve traffic flow at a major intersection
in a heavily traveled suburban area. The first alternative involves improved traffic
signaling. The second alternative includes traffic-signal improvements and intersection
widening for exclusive left turns. The third alternative includes extensive reconstruction,
including a grade separation structure. The construction costs, as well as annual
maintenance and user costs, are listed in the following table for each alternative.
Determine which alternative is preferred based on economic criteria if the analysis
period is 20 years and the annual interest rate is 15%. Show that the result is the same
using the present worth, equivalent annual cost, benefit– cost ratio, and rate-of-return
methods.