Economic Evaluation of Development Projects on Transportation ROW

by Snehamay Khasnabis, (A.M.ASCE), Assoc. Prof., Dept. of Civ. Engrg.; Wayne State Univ., 667 Merrick, Detroit, MI 48202,
Kenneth S. Opiela, (A.M.ASCE), Manager, Transportation Engineer and Planning; Goodell, Grivas, Inc., 17320 W. Eight Mile Road, Southfield, MI 48075,
Ronald G. Arbogast, (M.ASCE), Vice-Pres.; Refuse Resource Recovery, Inc., 30555 Southfield Rd., Southfield, Mich. 48075,

Serial Information: Transportation Engineering Journal of ASCE, 1982, Vol. 108, Issue 1, Pg. 51-70

Document Type: Journal Paper


The development and application of a computer model for testing the feasibility of multiple agency development projects at proposed transit stations is described. Given a development strategy, the model allocates project costs and revenues among a number of participating entities and uses the `Internal Rate of Return' technique to compute the project returns to each entity. An iterative technique is used to derive the return by converging the numerical value of the `Net Present Worth' of the cash flow to zero by systematically altering the interest rate. The return for each entity is calculated the model in the form of a three dimensional matrix as a function of the type, location and strategy of the project. The model can also estimate annual net return/cost for each entity for a specified interest rate. The study shows that the model can be used to identify optimal development strategies for a given project, economically feasible development projects at a given site, and desirable sites for development projects from a number of possible alternatives.

Subject Headings: Computer models | Economic factors | Feasibility studies | Three-dimensional models | Computer software | Construction costs | Revenues | Numerical methods

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