A new highway is to be constructed. Design A calls for a concrete pavement costing $80 per foot with a 16-year life; three paved ditches costing $4 per foot each; and two 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 $400 each per mile. Design B calls for a bituminous pavement costing $30 per foot with a 8-year life; two sodded ditches costing $1.55 per foot each; and three pipe culverts every mile, each costing $2,200 and having a 8-year life. The replacement culverts will cost $2,400 each. Annual maintenance wil 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 $1.65 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 12% per year. Click the icon to view the interest and annuity table for discrete compounding when the MARR is 12% per year.

A new highway is to be constructed. Design A calls for a concrete pavement costing $80 per foot with a 16-year life; three paved ditches costing $4 per foot each; and two 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 $400 each per mile. Design B calls for a bituminous pavement costing $30 per foot with a 8-year life; two sodded ditches costing $1.55 per foot each; and three pipe culverts every mile, each costing $2,200 and having a 8-year life. The replacement culverts will cost $2,400 each. Annual maintenance wil 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 $1.65 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 12% per year. Click the icon to view the interest and annuity table for discrete compounding when the MARR is 12% per year.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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