3- The maintenance costs for a bridge with an expected 50 years life are estimated to be ($10,000,000) each year for the first 5 years, followed by ($50,000,000) other costs at year 15, and ($75,000,000) at the year 30, if (i 10%), what is the annual uniform cost over the entire 50 years? %3D 4- A firm is considering three mutually exclusive alternatives as part of a production improvement program. The alternatives are: Alternative B (i=10%) 270,000 40,500 A (i=12%) C(i=15%) 190,000 30,250 Installation Cost (U) 200,000 30,750 Uniform Annual Benefit (U) Useful life in years 12 14 15 Which of the above should be chosen?

3- The maintenance costs for a bridge with an expected 50 years life are estimated to be ($10,000,000) each year for the first 5 years, followed by ($50,000,000) other costs at year 15, and ($75,000,000) at the year 30, if (i 10%), what is the annual uniform cost over the entire 50 years? %3D 4- A firm is considering three mutually exclusive alternatives as part of a production improvement program. The alternatives are: Alternative B (i=10%) 270,000 40,500 A (i=12%) C(i=15%) 190,000 30,250 Installation Cost (U) 200,000 30,750 Uniform Annual Benefit (U) Useful life in years 12 14 15 Which of the above should be chosen?

Fundamentals Of Construction Estimating

4th Edition

ISBN:9781337399395

Author:Pratt, David J.

Publisher:Pratt, David J.

Chapter18: Life-cycle Costing

Section: Chapter Questions

Problem 14RQ

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Concept explainers

Engineering Economics Principles

Engineering economics (engineering economy) is a sub-field of economics to study the use and application of the economic principles in the engineering analysis of decisions along with the systematic evaluation of the advantages of project costs inclusive of engineering design and analysis. It emphasizes microeconomics (a subset of economics) for researching the behavior of people in the decision-making process of assigning and determining multiple alternatives to the usage of some of the restrained resources and merging economic theory and engineering practice in a practical manner. It depicts the logical framework of economics in addition to the analytical application of statistics and mathematics.

Question

3- The maintenance costs for a bridge with an expected 50 years life are
estimated to be ($10,000,000) each year for the first 5 years, followed by
($50,000,000) other costs at year 15, and ($75,000,000) at the year 30, if ( i
10%), what is the annual uniform cost over the entire 50 years?
%3D
4- A firm is considering three mutually exclusive alternatives as part of a
production improvement program. The alternatives are:
Alternative
A (i=12%)
B (i=10%)
C (i=15%)
Installation Cost (U)
200,000
270,000
190,000
Uniform Annual
30,750
40,500
30,250
Benefit (U)
Useful life in years
12
14
15
Which of the above should be chosen?

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