4. (a) Consider an urban highway corridor of 3 km in length, with an AADT of 120,000 veh/day in the base year. It is projected that the traffic growth is 3% per annum. Given the fuel consumption model as 2.824 Fc = 0.0851 + V where Fc is the fuel consumption in litres/veh/km, and V is the average speed on the corridor in km/h, and a speed-flow model as V = 60 exp(-30) where Q is the AADT in veh/day and = 10x10-6. The maintenance cost of the highway is $10M per annum. An improvement project is proposed for the highway. The capital cost of the project is $800M (including base year maintenance). The maintenance cost of the improved highway is $2M per annum after project completion. The project takes one year (i.e., the base year) to complete, during which the value of is increased to 13x10-6. However, after completion, is reduced to 4x10-6. Consider a 5-year evaluation period including the base year, and assume that the fuel price is $10 per litre and the value of time is $60 per hour. The discount rate is 3% per annum. Carry out a cost-benefit analysis to evaluate the improvement project. [70%] (b) Evaluate the economic internal rate of return for the improvement project in (a). [30%] 4. (a) Consider an urban highway corridor of 3 km in length, with an AADT of 120,000 veh/day in the base year. It is projected that the traffic growth is 3% per annum. Given the fuel consumption model as 2.824 Fc = 0.0851 + V where Fc is the fuel consumption in litres/veh/km, and V is the average speed on the corridor in km/h, and a speed-flow model as V = 60 exp(-30) where Q is the AADT in veh/day and = 10x10-6. The maintenance cost of the highway is $10M per annum. An improvement project is proposed for the highway. The capital cost of the project is $800M (including base year maintenance). The maintenance cost of the improved highway is $2M per annum after project completion. The project takes one year (i.e., the base year) to complete, during which the value of is increased to 13x10-6. However, after completion, is reduced to 4x10-6. Consider a 5-year evaluation period including the base year, and assume that the fuel price is $10 per litre and the value of time is $60 per hour. The discount rate is 3% per annum. Carry out a cost-benefit analysis to evaluate the improvement project. [70%] (b) Evaluate the economic internal rate of return for the improvement project in (a). [30%]