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Problem 2 (2 points) 2.1 A city plans to upgrade its storm water management infrastructure by installing new pipes. The installation costs 2.6 million dollars and the annual maintenance cost is $26,000. Every 11 years, the system needs to be fully examined which requires a fixed management and material cost of $30,000 and a variable labor cost at the rate of $30/hr. 18 full time (working 8 hours per day) workers will be employed for 60 days for this task. If the infrastructure has a life time of 132 years and the city's interest rate is 4%, (Please round your answer to two decimal places at the million level for both questions, e.g. '1.23' millions) a. what is the capitalized worth of the project (in millions)? Please note that the value could be negative. (1 point) $ 1.48 Incorrect (0 points) Show Your Attempts v 2.2 b) what is the EUAC of the infrastructure (in million dollars)? $ LATEX You have used 2 of 5 attempts Submitted Mar 3, 3:37 PM Submit (1 point) LATEX

Problem 2 (2 points) 2.1 A city plans to upgrade its storm water management infrastructure by installing new pipes. The installation costs 2.6 million dollars and the annual maintenance cost is $26,000. Every 11 years, the system needs to be fully examined which requires a fixed management and material cost of $30,000 and a variable labor cost at the rate of $30/hr. 18 full time (working 8 hours per day) workers will be employed for 60 days for this task. If the infrastructure has a life time of 132 years and the city's interest rate is 4%, (Please round your answer to two decimal places at the million level for both questions, e.g. '1.23' millions) a. what is the capitalized worth of the project (in millions)? Please note that the value could be negative. (1 point) $ 1.48 Incorrect (0 points) Show Your Attempts v 2.2 b) what is the EUAC of the infrastructure (in million dollars)? $ LATEX You have used 2 of 5 attempts Submitted Mar 3, 3:37 PM Submit (1 point) LATEX

EBK HEALTH ECONOMICS AND POLICY
EBK HEALTH ECONOMICS AND POLICY
7th Edition
ISBN:9781337668279
Author:Henderson
Publisher:Henderson
Chapter4: Economic Evaluation In Health Care
Section: Chapter Questions
Problem 7QAP
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Problem 2 (2 points) 2.1 A city plans to upgrade its storm water management infrastructure by installing new pipes. The installation costs 2.6 million dollars and the annual maintenance cost is $26,000. Every 11 years, the system needs to be fully examined which requires a fixed management and material cost of $30,000 and a variable labor cost at the rate of $30/hr. 18 full time (working 8 hours per day) workers will be employed for 60 days for this task. If the infrastructure has a life time of 132 years and the city's interest rate is 4%, (Please round your answer to two decimal places at the million level for both questions, e.g. '1.23' millions) a. what is the capitalized worth of the project (in millions)? Please note that the value could be negative. (1 point) $ 1.48 Incorrect (0 points) Show Your Attempts v 2.2 b) what is the EUAC of the infrastructure (in million dollars)? $ LATEX You have used 2 of 5 attempts Submitted Mar 3, 3:37 PM Submit (1 point) LATEX
Transcribed Image Text:Problem 2 (2 points) 2.1 A city plans to upgrade its storm water management infrastructure by installing new pipes. The installation costs 2.6 million dollars and the annual maintenance cost is $26,000. Every 11 years, the system needs to be fully examined which requires a fixed management and material cost of $30,000 and a variable labor cost at the rate of $30/hr. 18 full time (working 8 hours per day) workers will be employed for 60 days for this task. If the infrastructure has a life time of 132 years and the city's interest rate is 4%, (Please round your answer to two decimal places at the million level for both questions, e.g. '1.23' millions) a. what is the capitalized worth of the project (in millions)? Please note that the value could be negative. (1 point) $ 1.48 Incorrect (0 points) Show Your Attempts v 2.2 b) what is the EUAC of the infrastructure (in million dollars)? $ LATEX You have used 2 of 5 attempts Submitted Mar 3, 3:37 PM Submit (1 point) LATEX
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