A ne and asphant paving be used he asphalt cost $150 per foot, including the material and the paving operation. Due to the heavy usage expected, the asphalt is expected to last 5 years before requiring resurfacing. It is anticipated that the cost of resurfacing will remain the same per foot. Concrete drainage ditches will be installed to each side of the highway; they will each cost $7.75 per foot to install. Ditches will have to be replaced every 15 years; the cost of replacing them will also be $7.75 per foot. Four pipe culverts will be installed every mile; each culvert will cost $8,000 and will last 10 years; replacement culverts will cost $10,000 each, indefinately. Annual maintanance of the highway will cost $9,000 per mile. Cleaning each culvert will cost $1,250 per year. Cleaning and maintaining each ditch will cost $3.75 per foot per year. Determine the capitalized cost (CC) per mile of highway using a MARR of 5%.

A ne and asphant paving be used he asphalt cost $150 per foot, including the material and the paving operation. Due to the heavy usage expected, the asphalt is expected to last 5 years before requiring resurfacing. It is anticipated that the cost of resurfacing will remain the same per foot. Concrete drainage ditches will be installed to each side of the highway; they will each cost $7.75 per foot to install. Ditches will have to be replaced every 15 years; the cost of replacing them will also be $7.75 per foot. Four pipe culverts will be installed every mile; each culvert will cost $8,000 and will last 10 years; replacement culverts will cost $10,000 each, indefinately. Annual maintanance of the highway will cost $9,000 per mile. Cleaning each culvert will cost $1,250 per year. Cleaning and maintaining each ditch will cost $3.75 per foot per year. Determine the capitalized cost (CC) per mile of highway using a MARR of 5%.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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