The comparison between the performances of the two units.

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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 salvage values for each alternative. Annual Operations and Maintenance Initial Construction Alternative Cost ($) 1 16,000 2 3 7,500 18,000 Costs ($) 2,000 3,750 2,000 Useful Life (years) Salvage Value ($) 10 5 10 6,000 850 7,300 Assume that the discount rate is 10 percent. Calculate the present worth (in dollars) for each alternative. (Assume for Alternative 2 that new sheeting must be purchased at the end of the first five years, and that all operations and maintenance costs are due at the end of each year.) PW1 PW 2 = $25967 Your response differs from the correct answer by more than 10%. Double check your calculations. = $21185.5 x PW 3 = $…

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Chapter 5, Problem 5.9P

To determine

The comparison between the performances of the two units.

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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 salvage values for each alternative. Annual Operations and Maintenance Initial Construction Alternative Cost ($) 1 16,000 2 3 7,500 18,000 Costs ($) 2,000 3,750 2,000 Useful Life (years) Salvage Value ($) 10 5 10 6,000 850 7,300 Assume that the discount rate is 10 percent. Calculate the present worth (in dollars) for each alternative. (Assume for Alternative 2 that new sheeting must be purchased at the end of the first five years, and that all operations and maintenance costs are due at the end of each year.) PW1 PW 2 = $25967 Your response differs from the correct answer by more than 10%. Double check your calculations. = $21185.5 x PW 3 = $…

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