Total annual cost of highway transportation formula
Answers
The highway project follows the principle that benefits must justify the expenditure incurred on the improvement. There are different ways to calculate the total annual cost of highway transportation. One of the common methods is the Annual Cost Method. The formula used in this method is:
Cr = P[ {i(1+ i)^n}/{(1+ i)^n - 1}] = P (CRF)
The sum of the annual costs of the capital recovery (Cr) plus the annual maintenance and road user costs determines the total annual cost.
Answer:
A=B+CN
Explanation:
Annual coast of highway consists of the first annual cost plus the annual maintenance charges.
therefore, total annual cost of highway Transportation (A) may be expressed as,
A = B + CN
where, B = Annual cost of highway.
C = Annual cost of Vehicle Operation and
N = total no. of vehicles on the road per year.