A department of transportation is considering widening lanes on major highways from 6 m to 7.5 m. The objective is to reduce the accident rate. Accidents have both material and human costs. Data for the highway section are found below.

a) Compute the present worth of costs of lane-widening.

b) Compute the present worth of savings of non-human accident costs.

c) Compute the present worth of the savings of serious personal injury

d) What is the BCR of the project?

e) What is the BCRM of the project?

Item Data 150 90 10% 2500 40 000 Accidents per 100 000 000 vehicle-kilometers in 6 m lanes Accidents per 100 000 000 vehicle-kilometers in 7.5 m lanes Serious personal injuries per accident Average non-human cost per accident ($) Average cost of personal injuries per accident ($) Annual road use (vehicles) First cost per kilometer ($) Operating and maintenance costs per kilometer/year ($) Project life (years) MARR 7 500 000 175 000 7 500 25 10% Item Data 150 90 10% 2500 40 000 Accidents per 100 000 000 vehicle-kilometers in 6 m lanes Accidents per 100 000 000 vehicle-kilometers in 7.5 m lanes Serious personal injuries per accident Average non-human cost per accident ($) Average cost of personal injuries per accident ($) Annual road use (vehicles) First cost per kilometer ($) Operating and maintenance costs per kilometer/year ($) Project life (years) MARR 7 500 000 175 000 7 500 25 10%