Two alternatives are under consideration for maintenance of a bridge. Select the most cost-effective alternative using present worth analysis. Assume an interest rate of 10% per year and a design life of 50 years for each alternative. Alternative A consists of annual maintenance costs of $5,000 per year for the design life except for: Year 20, in which bridge deck repairs will cost $20,000 Year 30, in which a deck overlay and structural repairs will cost $105,000 Alternative B consists of annual maintenance costs of $3,000 per year for the design life except for: Year 20, in which bridge deck repairs will cost $35,000 Year 30, in which a deck overlay and structural repairs will cost $85,000
Two alternatives are under consideration for maintenance of a bridge. Select the most
cost-effective alternative using present worth analysis. Assume an interest rate of
10% per year and a design life of 50 years for each alternative.
Alternative A consists of annual maintenance costs of $5,000 per year for the design
life except for:
Year 20, in which bridge deck repairs will cost $20,000
Year 30, in which a deck overlay and structural repairs will cost $105,000
Alternative B consists of annual maintenance costs of $3,000 per year for the design
life except for:
Year 20, in which bridge deck repairs will cost $35,000
Year 30, in which a deck overlay and structural repairs will cost $85,000
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