Uses of anti glare screen barrier in economic, financial analysis and determination of optimal debt capacity ratio for a road project

Abstract

Drivers of vehicles are facing problem to drive due to the glare of head light of the opposite vehicle. This reduces the speed of vehicle during night driving for the case of not providing anti glare screen barrier on the median of the divided carriageway. This speed can be increased by providing anti glare screen barrier on the median of divided carriageway. Different values of Vehicle Operating Cost (VOC) have been found for both the cases. The values of VOC savings 40% and 15% are recommended as toll tariff for commercial and passenger/bus vehicle respectively. Financial analysis has been carried out using toll rate calculated from VOC savings. Toll revenue has been determined considering effects of local traffic, leakage of traffic and toll exempted traffic. These toll rates are used to carry out financial analysis to determine optimal debt capacity ratio. This paper presents the development of a model to determine the optimal debt equity ratio based on equal and variable repayment schedule as well as proposing equal and variable depreciation and identify best model for using equity holder. The model is the combination of a financial model and a linear programming model that incorporates an objective of maximizing the return of the project from the equity holder’s point of view and identify best method of repayment schedule from promoter point of view. Equal installment schedule with Written Down Value i. e., variable Depreciation Method is the best method which maximizes return on equity. To show the versatility of the model, a real case study has also been presented herein.