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A new bridge project is being evaluated at i = 5%. Recommend an alternative based on the capitalized cost for each. Concrete Steel Construction Cost $50 million 40 million Annual O&M $ 250,000 1,000,000 Life (years) 70 50

A new bridge project is being evaluated at i = 5%. Recommend an alternative based on the capitalized cost for each. Concrete Steel Construction Cost $50 million 40 million Annual O&M $ 250,000 1,000,000 Life (years) 70 50

Elements Of Electromagnetics
Elements Of Electromagnetics
7th Edition
ISBN:9780190698614
Author:Sadiku, Matthew N. O.
Publisher:Sadiku, Matthew N. O.
ChapterMA: Math Assessment
Section: Chapter Questions
Problem 1.1MA
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A new bridge project is being evaluated at i = 5%. C Recommend an alternative based on the capitalized cost for each. Concrete Steel Construction Cost $50 million 40 million Annual O&M $ 250,000 1,000,000 Life (years) 70 50
Transcribed Image Text:A new bridge project is being evaluated at i = 5%. C Recommend an alternative based on the capitalized cost for each. Concrete Steel Construction Cost $50 million 40 million Annual O&M $ 250,000 1,000,000 Life (years) 70 50
Expert Solution
Step 1

To Find :

The capitalized cost for each.

Given :

The new bridge project is being evaluated at i=5%.

For concrete:

The construction cost is $50Million 

The annual O&M is $250,000

The life year is 70 year

For steel:

The construction cost is $50Million 

The annual O&M is $250,000

The life year is 70 year

Formula used :

The capitalized cost can be obtained as,

C.C=P+AR

Here P is present worth, R is rate,A is annual O&M.

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