A new highway is to be constructed. Design A calls for a concrete pavement costing $70 per foot with a 16-year life, three paved ditches costing $3 per foot each and two box culverts every mile, each costing $9,000 and having a 16-year life. Annual maintenance will cost $1.700 per mile: the culverts must be cleaned every four years at a cost of $300 each per mile Design B calls for a bituminous pavement costing $45 per foot with a 8-year ise, two sodded ditches costing $1.65 per foot each and two pipe culverts every mile, each costing $2.100 and having a 8-year ife. The replacement culverts will cost $2.450 each Annual maintenance will cost $2.600 per me, the culverts must be cleaned yearly at a cost of $215 each per mile and the annual ditch maintenance will cost $1.35 per foot per ditch Compare the two designs on the basis of equivalent worth per mile for a 16-year period. Find the most economical design on the basis of AW and PWf the MARR is 10% per year. Click the icon to view the interest and annuity table for discrete compounding when the MARR is 10% per year The AW value for Design A is Sm (Round to the nearest hundreds.)
A new highway is to be constructed. Design A calls for a concrete pavement costing $70 per foot with a 16-year life, three paved ditches costing $3 per foot each and two box culverts every mile, each costing $9,000 and having a 16-year life. Annual maintenance will cost $1.700 per mile: the culverts must be cleaned every four years at a cost of $300 each per mile Design B calls for a bituminous pavement costing $45 per foot with a 8-year ise, two sodded ditches costing $1.65 per foot each and two pipe culverts every mile, each costing $2.100 and having a 8-year ife. The replacement culverts will cost $2.450 each Annual maintenance will cost $2.600 per me, the culverts must be cleaned yearly at a cost of $215 each per mile and the annual ditch maintenance will cost $1.35 per foot per ditch Compare the two designs on the basis of equivalent worth per mile for a 16-year period. Find the most economical design on the basis of AW and PWf the MARR is 10% per year. Click the icon to view the interest and annuity table for discrete compounding when the MARR is 10% per year The AW value for Design A is Sm (Round to the nearest hundreds.)
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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Question
A9.
![A new highway is to be constructed. Design A calls for a concrete pavement costing $70 per foot with a 16-year life, three paved ditches costing $3 per foot each, and two
box culverts every mile, each costing $9,000 and having a 16-year life. Annual maintenance will cost $1,700 per mile: the culverts must be cleaned every four years at a
cost of $300 each per mile.
Design B calls for a bituminous pavement costing $45 per foot with a 8-year life, two sodded ditches costing $1.65 per foot each; and two pipe culverts every mile, each
costing $2.100 and having a 8-year life. The replacement culverts will cost $2.450 each. Annual maintenance will cost $2.600 per mie: the culverts must be cleaned yearly
at a cost of $215 each per mile; and the annual ditch maintenance will cost 51.35 per foot per ditch
Compare the two designs on the basis of equivalent worth per mile for a 16-year period. Find the most economical design on the basis of AW and PW if the MARR is 10%
per year
Click the icon to view the interest and annuity table for discrete compounding when the MARR is 10% per year.
The AW value for Design A is $m. (Round to the nearest hundreds.)](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Ff6d7fadc-5e53-45a8-9fdc-0362cdca95f3%2F1bac8f3d-e240-447d-afd0-da61b6d6b759%2Fc68knr_processed.jpeg&w=3840&q=75)
Transcribed Image Text:A new highway is to be constructed. Design A calls for a concrete pavement costing $70 per foot with a 16-year life, three paved ditches costing $3 per foot each, and two
box culverts every mile, each costing $9,000 and having a 16-year life. Annual maintenance will cost $1,700 per mile: the culverts must be cleaned every four years at a
cost of $300 each per mile.
Design B calls for a bituminous pavement costing $45 per foot with a 8-year life, two sodded ditches costing $1.65 per foot each; and two pipe culverts every mile, each
costing $2.100 and having a 8-year life. The replacement culverts will cost $2.450 each. Annual maintenance will cost $2.600 per mie: the culverts must be cleaned yearly
at a cost of $215 each per mile; and the annual ditch maintenance will cost 51.35 per foot per ditch
Compare the two designs on the basis of equivalent worth per mile for a 16-year period. Find the most economical design on the basis of AW and PW if the MARR is 10%
per year
Click the icon to view the interest and annuity table for discrete compounding when the MARR is 10% per year.
The AW value for Design A is $m. (Round to the nearest hundreds.)
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