A new bridge project is being evaluated at i = 20%. Recommend an alternative based on the capitalized cost for each. Cost AnnualO&M Life(years) $250,000 $500,000 Construction Concrete Steel Solution: 1. Here $50million $40million 2. CC concrete 50 3. CC steel 4. Choose capitalized cost (CC). million dollars; million dollars; 70 50

ENGR.ECONOMIC ANALYSIS
14th Edition
ISBN:9780190931919
Author:NEWNAN
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Chapter1: Making Economics Decisions
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A new bridge project is being evaluated at i = 20%. Recommend an alternative based on the capitalized cost for each.
AnnualO&M Life(years)
$250,000
$500,000
Construction Cost
Concrete $50million
Steel
$40million
Solution:
1. Here
2. CC concrete 50
3. CC steel
4. Choose
capitalized cost (CC).
million dollars;
million dollars;
70
50
Transcribed Image Text:A new bridge project is being evaluated at i = 20%. Recommend an alternative based on the capitalized cost for each. AnnualO&M Life(years) $250,000 $500,000 Construction Cost Concrete $50million Steel $40million Solution: 1. Here 2. CC concrete 50 3. CC steel 4. Choose capitalized cost (CC). million dollars; million dollars; 70 50
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