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1). A single lane road 50 km long is to be widened to 2 lanes at a cost of Rs.15 lakhs per km including

1). A single lane road 50 km long is to be widened to 2 lanes at a cost of Rs.15 lakhs per km including all improvements. The average cost of operation of vehicles on the single lane road is Rs.4 per vehicle-km, whereas it is Rs.3.75 per vehicle-km on the improved facility. The average traffic may be assumed as 2500 vehicles per day over a design period of 20 years. The annual cost of maintenance is Rs.10000 per km on the existing road and Rs.15000 per km on the improved road. Is the investment in the improved scheme is worthwhile? Assume an interest rate of 10%.

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