A steel pedestrian overpass must either be reinforced or replaced. Reinforcement would cost $52,000 and would make the overpass adequate for the additional 20 years of service if the overpass is torn down. The scrap value of the steel would exceed theremoval cost by $14, 000 if it is reinforced it is estimated that it's net salvage market value would be $16,000 at the time it is retired from the service. a new prestressed concrete overpass would cause $180,000 and would meet the foreseeable requirements of the next 20 years such a design would have no net scrap or market value it is estimated that the annual expenses of the reinforced overpass would exceed those of the concrete overpass by $3200. Assume the money cost the state 10% per year and that the state pays no taxes. Using FW method what is the equivalent future expenses of a new prestressed overpass? Using FW method what is the equivalent future worth of the reinforced overpass?

Fundamentals Of Construction Estimating
4th Edition
ISBN:9781337399395
Author:Pratt, David J.
Publisher:Pratt, David J.
Chapter11: Pricing Concrete Work
Section: Chapter Questions
Problem 9RQ: Calculate the cost per cubic yard to place concrete using each of the alternatives described. The...
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A steel pedestrian overpass must either be reinforced or
replaced. Reinforcement would cost $52,000 and would
make the overpass adequate for the additional 20 years
of service if the overpass is torn down. The scrap value
of the steel would exceed theremoval cost by $14,000 if
it is reinforced it is estimated that it's net salvage market
value would be $16,000 at the time it is retired from the
service. a new prestressed concrete overpass would
cause $180,000 and would meet the foreseeable
requirements of the next 20 years such a design would
have no net scrap or market value it is estimated that
the annual expenses of the reinforced overpass would
exceed those of the concrete overpass by $3200.
Assume the money cost the state 10% per year and that
the state pays no taxes. Using FW method what is the
equivalent future expenses of a new prestressed
overpass? Using FW method what is the equivalent
future worth of the reinforced overpass?
Transcribed Image Text:A steel pedestrian overpass must either be reinforced or replaced. Reinforcement would cost $52,000 and would make the overpass adequate for the additional 20 years of service if the overpass is torn down. The scrap value of the steel would exceed theremoval cost by $14,000 if it is reinforced it is estimated that it's net salvage market value would be $16,000 at the time it is retired from the service. a new prestressed concrete overpass would cause $180,000 and would meet the foreseeable requirements of the next 20 years such a design would have no net scrap or market value it is estimated that the annual expenses of the reinforced overpass would exceed those of the concrete overpass by $3200. Assume the money cost the state 10% per year and that the state pays no taxes. Using FW method what is the equivalent future expenses of a new prestressed overpass? Using FW method what is the equivalent future worth of the reinforced overpass?
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