How many users per year are needed to justify the road

Reference no: EM132171358

Question: Construct reasonable limits for the following variables, and then create a spider plot: construction costs, repaving cost, road life, interest rate, and value per trip. Assume 45K trips per year.

Problem: A road costs $450,000 to build and $12,000 per year for street cleaning. The road is re-striped every 2 years for $28,000 and repaved every 10 years for $290,000. Assume that the road will last 60 years and that the interest rate is 8%. How many users per year are needed to justify the road if each trip is valued at $2? Assume re-striping cost not included in repaving cost.

Reference no: EM132171358

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