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At least vehicles per day must use the intersection to justify the second system. (Round up to the nearest whole number.)

At least vehicles per day must use the intersection to justify the second system. (Round up to the nearest whole number.)

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Two traffic signal systems are being considered for an intersection. One system costs $33,000 for installation and has an efficiency rating of 81%, requires 30 kW power (output), incurs a user cost of $0.24 per vehicle, and has a life of 12 years. A second system costs $46,000 to install, has an efficiency rating of 88%, requires 36 kW power (output), has a user cost of $0.19 per vehicle, and has a life of 15 years. Annual maintenance costs are $70 and $90, respectively. MARR = 9% per year. How many vehicles must use the intersection to justify the second system when electricity costs $0.08/kWh? Assume salvage value for each system equals zero. Project the difference in the user cost as savings for the second system. There are approximately 8,760 hours/year. Click the icon to view the interest and annuity table for discrete compounding when the MARR is 9% per year. (..... At least vehicles per day must use the intersection to justify the second system. (Round up to the nearest whole number.)
Transcribed Image Text:Two traffic signal systems are being considered for an intersection. One system costs $33,000 for installation and has an efficiency rating of 81%, requires 30 kW power (output), incurs a user cost of $0.24 per vehicle, and has a life of 12 years. A second system costs $46,000 to install, has an efficiency rating of 88%, requires 36 kW power (output), has a user cost of $0.19 per vehicle, and has a life of 15 years. Annual maintenance costs are $70 and $90, respectively. MARR = 9% per year. How many vehicles must use the intersection to justify the second system when electricity costs $0.08/kWh? Assume salvage value for each system equals zero. Project the difference in the user cost as savings for the second system. There are approximately 8,760 hours/year. Click the icon to view the interest and annuity table for discrete compounding when the MARR is 9% per year. (..... At least vehicles per day must use the intersection to justify the second system. (Round up to the nearest whole number.)
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