A road is being proposed to facilitate a housing development on a scenic Two alternatives have been suggested. One of the roadway alignments is to go around the lake and slightly impact a wetland. The second alternative will also go around the lake and will significantly impact two wetlands. The following table shows the anticipated costs for each alternative. Assuming that the annual interest rate (i) is 7%, determine which alternative is preferred using the Net Present Value method. Alternative First Cost ($) Annual Maintenance ($) Service Life (Years) Salvage Value ($) Annual Wetland Rehabilitation Costs ($) Annual Roadway Lighting Costs ($) I 75,000 3000 15 45,000 7500 1500 II 125,000 2000 15 25,000 2500 2500
A road is being proposed to facilitate a housing development on a scenic Two alternatives have been suggested. One of the roadway alignments is to go around the lake and slightly impact a wetland. The second alternative will also go around the lake and will significantly impact two wetlands. The following table shows the anticipated costs for each alternative. Assuming that the annual interest rate (i) is 7%, determine which alternative is preferred using the Net Present Value method. Alternative First Cost ($) Annual Maintenance ($) Service Life (Years) Salvage Value ($) Annual Wetland Rehabilitation Costs ($) Annual Roadway Lighting Costs ($) I 75,000 3000 15 45,000 7500 1500 II 125,000 2000 15 25,000 2500 2500
Chapter2: Loads On Structures
Section: Chapter Questions
Problem 1P
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- A road is being proposed to facilitate a housing development on a scenic Two alternatives have been suggested. One of the roadway alignments is to go around the lake and slightly impact a wetland. The second alternative will also go around the lake and will significantly impact two wetlands. The following table shows the anticipated costs for each alternative. Assuming that the annual interest rate (i) is 7%, determine which alternative is preferred using the Net Present Value method.
|
Alternative |
First Cost ($) |
Annual Maintenance ($) |
Service Life (Years) |
Salvage Value ($) |
Annual Wetland Rehabilitation Costs ($) |
Annual Roadway Lighting Costs ($) |
|
I |
75,000 |
3000 |
15 |
45,000 |
7500 |
1500 |
|
II |
125,000 |
2000 |
15 |
25,000 |
2500 |
2500 |
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