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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 55 per foot each; and three box culverts every mile, each costing $9,000 and having a 16-year life. Annual maintenance will cost $1,600 per mile; the culverts must be cleaned ever four years at a cost of $450 each per mille Design B calls for a bituminous pavement costing $55 per foot with a 8-year life; three sodded ditches costing $1.55 per foot each and three pipe culverts every mile, each costing $2,300 and having a 8-year life. The replacement culverts will cost $2.350 each. Annual maintenance will cost $2,600 per mile; the culverts must be cleaned yearly at a cost of $225 each per mile, and the annual ditch maintenance will cost $1.30 per foot per ditch. Compare the two designs on the basis of equivalent worth per mille 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. Reference The AW value for Design A is $imi. (Round to the nearest hundreds.) Discrete Compounding: /-10%

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 55 per foot each; and three box culverts every mile, each costing $9,000 and having a 16-year life. Annual maintenance will cost $1,600 per mile; the culverts must be cleaned ever four years at a cost of $450 each per mille Design B calls for a bituminous pavement costing $55 per foot with a 8-year life; three sodded ditches costing $1.55 per foot each and three pipe culverts every mile, each costing $2,300 and having a 8-year life. The replacement culverts will cost $2.350 each. Annual maintenance will cost $2,600 per mile; the culverts must be cleaned yearly at a cost of $225 each per mile, and the annual ditch maintenance will cost $1.30 per foot per ditch. Compare the two designs on the basis of equivalent worth per mille 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. Reference The AW value for Design A is $imi. (Round to the nearest hundreds.) Discrete Compounding: /-10%

ENGR.ECONOMIC ANALYSIS
ENGR.ECONOMIC ANALYSIS
14th Edition
ISBN:9780190931919
Author:NEWNAN
Publisher:NEWNAN
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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Find both for design A and B then decide which one is the most economical, thank you.

 

 

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 $5 per foot each; and three box culverts every mile, each costing $9,000 and having a 16-year life. Annual maintenance will cost $1,600 per mile; the culverts must be cleaned every four years at a cost of $450 each per mile. Design B calls for a bituminous pavement costing $55 per foot with a 8-year life; three sodded ditches costing $1.55 per foot each; and three pipe culverts every mile, each costing $2,300 and having a 8-year life. The replacement culverts will cost $2,350 each. Annual maintenance will cost $2,600 per mile; the culverts must be cleaned yearly at a cost of $225 each per mile; and the annual ditch maintenance will cost $1.30 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. - X Reference The AW value for Design A is $/mi. (Round to the nearest hundreds.) Discrete Compounding; /- 10% Single Payment Compound Amount Present Factor Worth Factor To Find F To Find P Given P Given F FIP PIF 1.1000 0.9091 1.2100 0.8264 1.3310 1.4641 Compound Amount Factor To Find F Given A FIA 1.0000 2.1000 Uniform Series Present Worth Factor To Find P Given A PIA 0.9091 1.7355 0.7513 3.3100 2.4869 0.6830 4.6410 3.1699 1.6105 0.6209 6.1051 3.7908 1.7716 0.5645 7.7156 4.3553 1.9487 0.5132 9.4872 4.8684 5.3349 2.1436 2:1430 0.4665 11.4359 11:4999 2.3579 0.4241 13.5795 5.7590 2.5937 0.3855 6.1446 0.1440 15.9374 0:00 18.5312 10:9912 2.8531 2:0991 0.3505 6.4951 3.1384 0.3186 21.3843 6.8137 3.4523 0.2897 24.5227 7.1034 7.3667 3.7975 0.2633 27.9750 31.7725 4.1772 0.2394 7.6061 4.5950 0.2176 35.9497 7.8237 5.0545 0.1978 40.5447 8.0216 5.5599 0.1799 45.5992 8.2014 6.1159 0.1635 51.1591 8.3649 6.7275 0.1486 57.2750 8.5136 N 1 2 3 A 4 5 6 T 7 8 9 10 11 12 13 13 14 14 15 13 16 10 17 18 19 20 Sinking Fund Factor To Find A Given F AIF 1.0000 0.4762 0.3021 0.2155 0.1638 0.1296 0.1054 0.0874 0.0074 0.0736 0.0627 0.0540 0.0468 0.0408 0.0357 0.0315 0.0278 0.0247 0.0219 0.0195 0.0175 Capital Recovery Factor To Find A Given P AIP 1.1000 0.5762 0.4021 0.3155 0.2638 0.2296 0.2054 0.1874 0.1736 0.1627 0.1540 0.1468 0.1408 0.1357 0.1315 0.1278 0.1247 0.1219 0.1195 0.1175
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 $5 per foot each; and three box culverts every mile, each costing $9,000 and having a 16-year life. Annual maintenance will cost $1,600 per mile; the culverts must be cleaned every four years at a cost of $450 each per mile. Design B calls for a bituminous pavement costing $55 per foot with a 8-year life; three sodded ditches costing $1.55 per foot each; and three pipe culverts every mile, each costing $2,300 and having a 8-year life. The replacement culverts will cost $2,350 each. Annual maintenance will cost $2,600 per mile; the culverts must be cleaned yearly at a cost of $225 each per mile; and the annual ditch maintenance will cost $1.30 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. - X Reference The AW value for Design A is $/mi. (Round to the nearest hundreds.) Discrete Compounding; /- 10% Single Payment Compound Amount Present Factor Worth Factor To Find F To Find P Given P Given F FIP PIF 1.1000 0.9091 1.2100 0.8264 1.3310 1.4641 Compound Amount Factor To Find F Given A FIA 1.0000 2.1000 Uniform Series Present Worth Factor To Find P Given A PIA 0.9091 1.7355 0.7513 3.3100 2.4869 0.6830 4.6410 3.1699 1.6105 0.6209 6.1051 3.7908 1.7716 0.5645 7.7156 4.3553 1.9487 0.5132 9.4872 4.8684 5.3349 2.1436 2:1430 0.4665 11.4359 11:4999 2.3579 0.4241 13.5795 5.7590 2.5937 0.3855 6.1446 0.1440 15.9374 0:00 18.5312 10:9912 2.8531 2:0991 0.3505 6.4951 3.1384 0.3186 21.3843 6.8137 3.4523 0.2897 24.5227 7.1034 7.3667 3.7975 0.2633 27.9750 31.7725 4.1772 0.2394 7.6061 4.5950 0.2176 35.9497 7.8237 5.0545 0.1978 40.5447 8.0216 5.5599 0.1799 45.5992 8.2014 6.1159 0.1635 51.1591 8.3649 6.7275 0.1486 57.2750 8.5136 N 1 2 3 A 4 5 6 T 7 8 9 10 11 12 13 13 14 14 15 13 16 10 17 18 19 20 Sinking Fund Factor To Find A Given F AIF 1.0000 0.4762 0.3021 0.2155 0.1638 0.1296 0.1054 0.0874 0.0074 0.0736 0.0627 0.0540 0.0468 0.0408 0.0357 0.0315 0.0278 0.0247 0.0219 0.0195 0.0175 Capital Recovery Factor To Find A Given P AIP 1.1000 0.5762 0.4021 0.3155 0.2638 0.2296 0.2054 0.1874 0.1736 0.1627 0.1540 0.1468 0.1408 0.1357 0.1315 0.1278 0.1247 0.1219 0.1195 0.1175
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