Three transportation projects have been proposed to increase the safety in and around a residential neighborhood. Each project consists of upgrading existing street signing to highly retroreflective sheeting to increase visibility. The following table shows the initial construction costs, annual operating costs, useful life of the sheeting, and the salvage values for each alternative. Assume that the discount rate is 8%. Calculate the present worth for each alternative and determine the preferred project based on the economic criteria. Alternatives Initial Construction Cost($) Annual Operations and Maintenance Cost ($) Useful Life (Years) Salvage Value ($) 1 19,000 2,500 10 3,000 2 8,000 4,000 5 900 3 20,000 2,500 10 4,600
Three transportation projects have been proposed to increase the safety in and around a residential neighborhood. Each project consists of upgrading existing street signing to highly retroreflective sheeting to increase visibility. The following table shows the initial construction costs, annual operating costs, useful life of the sheeting, and the salvage values for each alternative. Assume that the discount rate is 8%. Calculate the present worth for each alternative and determine the preferred project based on the economic criteria. Alternatives Initial Construction Cost($) Annual Operations and Maintenance Cost ($) Useful Life (Years) Salvage Value ($) 1 19,000 2,500 10 3,000 2 8,000 4,000 5 900 3 20,000 2,500 10 4,600
Chapter2: Loads On Structures
Section: Chapter Questions
Problem 1P
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Three transportation projects have been proposed to increase the safety in and around a residential neighborhood. Each project consists of upgrading existing street signing to highly retroreflective sheeting to increase visibility. The following table shows the initial construction costs, annual operating costs, useful life of the sheeting, and the salvage values for each alternative. Assume that the discount rate is 8%. Calculate the present worth for each alternative and determine the preferred project based on the economic criteria.
| Alternatives | Initial Construction Cost($) | Annual Operations and Maintenance Cost ($) | Useful Life (Years) | Salvage Value ($) |
| 1 | 19,000 | 2,500 | 10 | 3,000 |
| 2 | 8,000 | 4,000 | 5 | 900 |
| 3 | 20,000 | 2,500 | 10 | 4,600 |
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