ECONOMICS A logistic analysis indicates that if a new bridge across the Cumberland River is constructed near a busy highway intersection in the commercial part of a mid-western town, the transportation cost of delivery trucks can be saved significantly. Logistics TransNet Industrial Consortium estimates that the construction (first) cost of the bridge is $1,900,000 and annual upkeep is estimated to be $25,000 per year. In addition to annual upkeep, major maintenance work is anticipated every ten years at a cost of $350,000 per occurrence. Annual savings in transportation cost is expected to be $150,000 per year. The salvage value of this bridge is negligible. The Consortium uses a MARR of 8% per year. Suppose that the bridge has a useful life of 30 years, what is the exac
ECONOMICS
A logistic analysis indicates that if a new bridge across the Cumberland River is constructed near a busy highway intersection in the commercial part of a mid-western town, the transportation cost of delivery trucks can be saved significantly. Logistics TransNet Industrial Consortium estimates that the construction (first) cost of the bridge is $1,900,000 and annual upkeep is estimated to be $25,000 per year. In addition to annual upkeep, major maintenance work is anticipated every ten years at a cost of $350,000 per occurrence. Annual savings in transportation cost is expected to be $150,000 per year. The salvage value of this bridge is negligible. The Consortium uses a MARR of 8% per year. Suppose that the bridge has a useful life of 30 years, what is the exact
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