Calculate the average daily number of vehicles

Reference no: EM132778916

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.

Problem 1: 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.

Reference no: EM132778916

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