The Bureau of Public Highways is considering possible types of road surfacing with cost estimates per kilometer: Type B P650k First Cost Resurfacing period Resurfacing Cost Type A P500k 8 years P200k 12 years P250k P20k Average annual maintenance cost P15k The periodic resurfacing do not include the base of the subgrade. Compare these types by calculating the present worth for 24 year service, with no salvage value at the end of this time using interest rate of 10%. What if Capitalized Cost is used, which is better?

The Bureau of Public Highways is considering possible types of road surfacing with cost estimates per kilometer: Type B P650k First Cost Resurfacing period Resurfacing Cost Type A P500k 8 years P200k 12 years P250k P20k Average annual maintenance cost P15k The periodic resurfacing do not include the base of the subgrade. Compare these types by calculating the present worth for 24 year service, with no salvage value at the end of this time using interest rate of 10%. What if Capitalized Cost is used, which is better?

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Hi expert bro Hand written solution is not allowed.
Compare the alternatives below using AW and i = 10% per year D -350,000 -35,000 35,000 ∞ First Cost, $ Annual operating cost, $/year Salvage value, $ Life, years с -150,000 - 10,000 15,000 10
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