A contractor was awarded a contract to build a 600 meter long tunnel. During the 5-year contract, water pipes are needed for the needs of the work. The analysis for costs is as follows Size 2" 3" 4" 5" Installation Cost Pump Cost/Hrs 220 130 250 300 12 6,5 5 4 pipes and pumps have a value equal to the cost of dismantling them. The pump operates 2000 hours annually. The lowest rate of return is 7% (MARR). Which type of pipe will you choose?

Advanced Engineering Mathematics
10th Edition
ISBN:9780470458365
Author:Erwin Kreyszig
Publisher:Erwin Kreyszig
Chapter2: Second-order Linear Odes
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A contractor was awarded a contract to build a 600 meter long
tunnel. During the 5-year contract, water pipes are needed for
the needs of the work. The analysis for costs is as follows
Size
2"
3"
4"
5"
Installation Cost Pump Cost/Hrs
220
130
250
300
12
6,5
5
4
pipes and pumps have a value equal to the cost of dismantling
them. The pump operates 2000 hours annually. The lowest rate
of return is 7% (MARR). Which type of pipe will you choose?
Transcribed Image Text:A contractor was awarded a contract to build a 600 meter long tunnel. During the 5-year contract, water pipes are needed for the needs of the work. The analysis for costs is as follows Size 2" 3" 4" 5" Installation Cost Pump Cost/Hrs 220 130 250 300 12 6,5 5 4 pipes and pumps have a value equal to the cost of dismantling them. The pump operates 2000 hours annually. The lowest rate of return is 7% (MARR). Which type of pipe will you choose?
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