life cost cycle analysis for Transportation planning or Pavement Engineering

SECTION A (Please use the data below to answer questions 1 to 5) Two design alternatives (A and B) have been submitted for a 50 kilometre urban road upgrading project. Design A costs R 35 million per kilometre (which includes drainage structures and a toll-gate). The annual maintenance would cost R 50 000 per kilometre over the first 20 years and then R 60 000 per kilometre over the remaining 10 years. In addition, there is an anticipated road accident cost of R3 000 000 per annum over the entire 50 kilometres stretch of road. It is envisaged that the Average Daily Traffic at the toll-gate would be 3000 vehicles per day at a toll-charge of R62 per vehicle. The design life of this alternative is 30 years. The alternative design B for the 50 kilometre road would cost R 40 million per kilometre. However, the annual road maintenance is R45 000 per kilometre for the first 27 years and then R52 000 per kilometre over the remaining 8 years. The expected annual road accident cost is R2 200 000 over the entire road length. The ADT and toll-gate charge remain the same. Using Net Present Value analysis at an interest rate of 11% per annum, determine which of the two design alternatives is a better option. (Hint: F =P (1+i)"; P= A[(1+1)" 1] /[1* (1+1)")) Question 1 What is the approximate total Present Value of the annual maintenance costs for design A compared to alternative design B? (A) R 50 381 915 (B) R 23 103 080 (C) R 23 109 188 (D) R 110 498 568 Question 2 What is the Net Present Value (NPV) of design alternative A compared to Alternative B? (A) R 1263 136 891 (B) R 1270 589 478 (C) R 490 354 973 (D) R 1183 200 097 Question 3 The total Present Value of annual maintenance costs for design alternative B in comparison with design A is (A) R 40 551 193 (B) R 20 551 193 (C) R 204 055 193 (D) R20 565 013 Question 4 What is the Net Present Value (NPV) of design alternative B compared to Design A? (A) R 1476 610 285 (B) R 2113 722 108 (C) R 596 630 625 (D) R 523 389 715 Question 5 On account of the Equivalent Uniform Annual Cash Flow (EUACF) values, which of the design alternatives is better? (A) (D) Design A is a better option (B) Design B is a better option (C) Inconclusive None of the two designs SECTION B (Please use the data below to answer questions 6 to 9) A transportation survey carried out for Municipality (divided into six zones) yielded the following results in Table 2.1 Table 2.1 Zone Number Population, Formal X Employment, X (000s) (00s) Trip generated, Y ('000) 1 2 3 4 7 2 0.5 5 4.5 9 1.5 24 30 12 22 4 SECTION A (Please use the data below to answer questions 1 to 5) Two design alternatives (A and B) have been submitted for a 50 kilometre urban road upgrading project. Design A costs R 35 million per kilometre (which includes drainage structures and a toll-gate). The annual maintenance would cost R 50 000 per kilometre over the first 20 years and then R 60 000 per kilometre over the remaining 10 years. In addition, there is an anticipated road accident cost of R3 000 000 per annum over the entire 50 kilometres stretch of road. It is envisaged that the Average Daily Traffic at the toll-gate would be 3000 vehicles per day at a toll-charge of R62 per vehicle. The design life of this alternative is 30 years. The alternative design B for the 50 kilometre road would cost R 40 million per kilometre. However, the annual road maintenance is R45 000 per kilometre for the first 27 years and then R52 000 per kilometre over the remaining 8 years. The expected annual road accident cost is R2 200 000 over the entire road length. The ADT and toll-gate charge remain the same. Using Net Present Value analysis at an interest rate of 11% per annum, determine which of the two design alternatives is a better option. (Hint: F =P (1+i)"; P= A[(1+1)" 1] /[1* (1+1)")) Question 1 What is the approximate total Present Value of the annual maintenance costs for design A compared to alternative design B? (A) R 50 381 915 (B) R 23 103 080 (C) R 23 109 188 (D) R 110 498 568 Question 2 What is the Net Present Value (NPV) of design alternative A compared to Alternative B? (A) R 1263 136 891 (B) R 1270 589 478 (C) R 490 354 973 (D) R 1183 200 097 Question 3 The total Present Value of annual maintenance costs for design alternative B in comparison with design A is (A) R 40 551 193 (B) R 20 551 193 (C) R 204 055 193 (D) R20 565 013 Question 4 What is the Net Present Value (NPV) of design alternative B compared to Design A? (A) R 1476 610 285 (B) R 2113 722 108 (C) R 596 630 625 (D) R 523 389 715 Question 5 On account of the Equivalent Uniform Annual Cash Flow (EUACF) values, which of the design alternatives is better? (A) (D) Design A is a better option (B) Design B is a better option (C) Inconclusive None of the two designs SECTION B (Please use the data below to answer questions 6 to 9) A transportation survey carried out for Municipality (divided into six zones) yielded the following results in Table 2.1 Table 2.1 Zone Number Population, Formal X Employment, X (000s) (00s) Trip generated, Y ('000) 1 2 3 4 7 2 0.5 5 4.5 9 1.5 24 30 12 22 4