Problem-
There are three proposals to improve access to National Highway # 11 from New Delhi to Kanpur, Uttar Pradesh state. The Financial data for the three Proposals (Including the monetary equivalents of perceives benefits and disbenefits) are listed in the Table below. The planning period is 20 years. Salvage values are Zero. The interested to be used in the analysis is X%.
|
|
Proposal 1
|
Proposal 2
|
Proposal 3
|
|
Construction Cost, $000
|
2600
|
3045
|
1890
|
|
Maintenance Cost, $000/yr
|
160
|
115
|
234
|
|
Reduced traffic policing cost, $000/yr
|
|
65
|
|
|
Improved traffic flow, $000.yr
|
110
|
45
|
39
|
|
Reduced noise pollution, $000/yr
|
|
90
|
21
|
|
Increased air pollution, $000/yr
|
55
|
75
|
|
Determine-
(a) the benefits cost ratio for Proposal 3, if x = 3
(b) the maximum value of x that would make Proposal 1 still acceptable
(c) the preferred Proposal, if x = 2%
Additional Information-
The problem belongs to Civil Engineering and it is clarify about calculating benefits cost ratio for 3 different proposals for building a highway and its yearly maintenance and other benefits. The calcultions have been given evidently in the answer in detail.