A university is considering two alternative types of bleachers for a new gymnasium. One of the two alternatives will be chosen. Assume that the benefits of the gymnasium are the same for both construction methods. Alternative A: Wooden bleachers on earth fill The first cost of $110,000 for the earth fill and $100.000o for the wooden bleachers. The annual painting costs are $5,000. The wooden bleachers must be replaced every 30 years at a cost of $100,000. The earth fill will last the entire 120 years Alternative B: Concrete Bleachers The first cost is $350,000. The expected life of the concrete bleachers is 120 years and the annual upkeep costs are $2,500

A university is considering two alternative types of bleachers for a new gymnasium. One of the two alternatives will be chosen. Assume that the benefits of the gymnasium are the same for both construction methods. Alternative A: Wooden bleachers on earth fill The first cost of $110,000 for the earth fill and $100.000o for the wooden bleachers. The annual painting costs are $5,000. The wooden bleachers must be replaced every 30 years at a cost of $100,000. The earth fill will last the entire 120 years Alternative B: Concrete Bleachers The first cost is $350,000. The expected life of the concrete bleachers is 120 years and the annual upkeep costs are $2,500

Structural Analysis

6th Edition

ISBN:9781337630931

Author:KASSIMALI, Aslam.

Publisher:KASSIMALI, Aslam.

Chapter2: Loads On Structures

Section: Chapter Questions

Problem 1P

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Concept explainers

Pricing Construction Equipment

Pricing construction equipment means estimating the cost of operation of all the construction equipment used in a construction project. The pricing is done based on two factors – ownership cost and operating cost of the equipment. Thorough knowledge of the ownership and operating costs is necessary for proper project management and executing profitable construction.

Question

A university is considering two alternative types of bleachers for a new gymnasium. One
of the two alternatives will be chosen. Assume that the benefits of the gymnasium are
the same for botth construction methods.
Alternative A: Wooden bleachers on earth fill
The first cost of $110.000 for the earth fill and $100.000 for the wooden bleachers. The
annual painting costs are $5,000. The wooden bleachers must be replaced every 30 years
at a cost of $100,000. The earth fill will last the entire 120 years
Alternative B: Concrete Bleachers
The first cost is $350,000. The expected life of the concrete bleachers is 120 years and the
annual upkeep costs are $2,500
The university uses a MARR of 7%. Which of the two alternatives is better?

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