AUTOMOTIVE TECHNOLOGY TECH MANUAL
AUTOMOTIVE TECHNOLOGY TECH MANUAL
7th Edition
ISBN: 9781337794220
Author: ERJAVEC
Publisher: CENGAGE L
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Chapter 22, Problem 10ASRQ
To determine

Whether Technician A or Technician B is correct.

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A pipeline engineer is considering alternative natural gas pipeline routings. The first route is mostly over land and the second is primarily undersea. Both pipelines will need some valve and fitting replacements in year 25. Cost data for each route is shown in Table P2.21. Notice that the undersea route has a higher initial cost due to higher installation costs and extra corrosion protection for the pipeline. However, the undersea route has cheaper security and maintenance costs which substantially reduces annual costs. The MARR for the project is 15%. Determine which route should be pursued based on a present worth analysis.
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