Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

An analysis of accidents in a rural state indicates that widening a highway from 30 ft to 40 ft will decrease the annual accident rate

An analysis of accidents in a rural state indicates that widening a highway from 30 ft to 40 ft will decrease the annual accident rate from 1,250 to 710 per million vehicle-miles. Calculate the average daily number of vehicles that should use the highway to justify widening on the basis of the following estimates: (i) the average loss per accident is $1,500; (ii) the cost of widening is $125,000 per mile; (iii) the useful life of the widened road is 25 years (iv) annual maintenance costs are 3% of the capital investment; and (v) the MARR is 12% per year.

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Survey Of Accounting

Authors: Carl S. Warren, Amanda Farmer, Jefferson P. Jones

10th Edition

0357900294, 9780357900291

More Books

Students also viewed these Accounting questions