A contractor operates a rock crusher and stores the material until needed in an adjacent stockpile area. The stockpile area is unpaved, and some of the stockpiled aggregate is contaminated by the sub-grade and cannot be used. The estimated stockpile losses are shown in the Table 1. This equates to a combined loss of 8% each year. Table 1 Current Stockpile Losses Material Size Loss A" minus 12% – 20% 4" minus & 4" x #4 8% – 15% 12" minus & 1%" x ¾" 4% – 10% The paving will cover 4.56 acres. The previous stockpile losses will serve as sub-grade and base courses for the new surfacing. A 3" thick surface will require 3700 tons of asphaltic concrete, which costs $20/ton installed. The engineering and site work involve a one-time cost of about $5000. The surface requires routine maintenance costing about $1000/year. Determine the internal rate of return (IRR) of the stockpile area paving.

Structural Analysis
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ISBN:9781337630931
Author:KASSIMALI, Aslam.
Publisher:KASSIMALI, Aslam.
Chapter2: Loads On Structures
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A contractor operates a rock crusher and stores the material until needed in an adjacent stockpile
area. The stockpile area is unpaved, and some of the stockpiled aggregate is contaminated by the
sub-grade and cannot be used. The estimated stockpile losses are shown in the Table 1. This
equates to a combined loss of 8% each year.
Table 1 Current Stockpile Losses
Material Size
Loss
4" minus
12% – 20%
4" minus & 4" × #4
8% – 15%
12" minus & 1½" x 4"
4% – 10%
The paving will cover 4.56 acres. The previous stockpile losses will serve as sub-grade and base
courses for the new surfacing. A 3" thick surface will require 3700 tons of asphaltic concrete, which
costs S20/ton installed. The engineering and site work involve a one-time cost of about $5000. The
surface requires routine maintenance costing about $1000/year.
Determine the internal rate of return (IRR) of the stockpile area paving.
Transcribed Image Text:A contractor operates a rock crusher and stores the material until needed in an adjacent stockpile area. The stockpile area is unpaved, and some of the stockpiled aggregate is contaminated by the sub-grade and cannot be used. The estimated stockpile losses are shown in the Table 1. This equates to a combined loss of 8% each year. Table 1 Current Stockpile Losses Material Size Loss 4" minus 12% – 20% 4" minus & 4" × #4 8% – 15% 12" minus & 1½" x 4" 4% – 10% The paving will cover 4.56 acres. The previous stockpile losses will serve as sub-grade and base courses for the new surfacing. A 3" thick surface will require 3700 tons of asphaltic concrete, which costs S20/ton installed. The engineering and site work involve a one-time cost of about $5000. The surface requires routine maintenance costing about $1000/year. Determine the internal rate of return (IRR) of the stockpile area paving.
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