Answered step by step
Verified Expert Solution
Question
1 Approved Answer
The transportation ministry has decided to construct a new metro station to reduce traffic congestion. Three mutually exclusive alternative locations for the station are being
The transportation ministry has decided to construct a new metro station to reduce traffic congestion. Three mutually exclusive alternative locations for the station are being studied using the Benefit-to-Cost ratio analysis with annual MARR of 5%, as shown in the table below. Station Y Z 600 850 900 300 380 480 3.00 3.50 3.85 60,000 70,000 80,000 Initial Cost ($) in million Operating expenses ($ in million) per year Average fare price per metro rider Estimated daily number of metro riders Travel time savings (minutes) per vehicle due to reduced congestion Value of saved time per hour Estimated traffic volume (no. of vehicles per day in each year) Estimated life (years) 10 10 15 20 20 20 500,000 550,000 570,000 15 20 20 a) What is the annual worth of Net Costs for stations X, Y, & Z? b) What is the annual worth of Net Benefits for stations X, Y, & Z? c) What is the BCR for stations X, Y, & Z? d) Using incremental comparison, which station location is the best alternative
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started