A road includes dangerous geometric features for high speedtravel which limit the travel speed on the highway in this area.Among alternatives, it is proposed to upgrade the road so thattravel speed may be increased. The upgrade will cost initially $38,500,000 and the annual maintenance cost is 800,000 $. It willresult in: 10 minutes reduction in travel time for the averagerunning vehicle. The estimated time cost is $3.5/hr. ï‚· Decrease inthe number of accidents by an average of 1.5 per day. The estimatedaverage cost per accident is $ 5000. ï‚· Reduction in the averagerunning cost per vehicle by $ 0.15 per day. For a project life of30 years and money rate of 4%, what is economic feasibility of thisproject if the average daily traffic is 3500?
