4444444.pdf - Background of the Case Project Strategic Decisions for Highway Operation \u201cA construction company has recently completed their highway

4444444.pdf - Background of the Case Project Strategic...

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401.661 Advanced Construction Technology 11 Background of the Case Project Strategic Decisions for Highway Operation City A A construction company has recently completed their highway construction project, which has been awarded with a BOT contract”. The highway runs from City A to City B in a more direct way than the existing road, and has service facilities for drivers”. City B Highway Old Road
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401.661 Advanced Construction Technology 12 A discounted cash flow analysis shows some numbers for toll charges that can return their investment within the operation period”. “However, the top management of the company won’t believe the numbers, thinking that highway operation might not be a simple mathematics ”.
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401.661 Advanced Construction Technology 13 According to their experience, drivers choose a drive road depending on cost-convenience tradeoffs , having the following two options:” A highway with a lot of services and toll An old road without services
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