A bridge design firm is performing an economic analysis of two mutually exclusive designs for a highway overpass. The steel girder option has an initial cost of $2.22 million, and the concrete option has an initial cost of $2.31 million. Every 25 years, the steel bridge must be painted at a cost of $430,000, and all other maintenance costs are the same for both options. The steel bridge is expected to last 50 years, and concrete bridge is expected to last 75 years. Both are assumed to be identically replaced indefinitely. Based on the shortest acceptable analysis period for each option, determine the equivalent uniform annual cost (EUAC) for the best option using an interest rate of 7%. Express your answer in $ to the nearest $1,000.

A bridge design firm is performing an economic analysis of two mutually exclusive designs for a highway overpass. The steel girder option has an initial cost of $2.22 million, and the concrete option has an initial cost of $2.31 million. Every 25 years, the steel bridge must be painted at a cost of $430,000, and all other maintenance costs are the same for both options. The steel bridge is expected to last 50 years, and concrete bridge is expected to last 75 years. Both are assumed to be identically replaced indefinitely. Based on the shortest acceptable analysis period for each option, determine the equivalent uniform annual cost (EUAC) for the best option using an interest rate of 7%. Express your answer in $ to the nearest $1,000.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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