3- The maintenance costs for a bridge with an expected 50 years life are estimated to be ($10,000,000) each year for the first 5 years, followed by ($50,000,000) other costs at year 15, and ($75,000,000) at the year 30, if (i 10%), what is the annual uniform cost over the entire 50 years? %3D 4- A firm is considering three mutually exclusive alternatives as part of a production improvement program. The alternatives are: Alternative B (i=10%) 270,000 40,500 A (i=12%) C(i=15%) 190,000 30,250 Installation Cost (U) 200,000 30,750 Uniform Annual Benefit (U) Useful life in years 12 14 15 Which of the above should be chosen?

Fundamentals Of Construction Estimating
4th Edition
ISBN:9781337399395
Author:Pratt, David J.
Publisher:Pratt, David J.
Chapter18: Life-cycle Costing
Section: Chapter Questions
Problem 14RQ
icon
Related questions
Question
3- The maintenance costs for a bridge with an expected 50 years life are
estimated to be ($10,000,000) each year for the first 5 years, followed by
($50,000,000) other costs at year 15, and ($75,000,000) at the year 30, if ( i
10%), what is the annual uniform cost over the entire 50 years?
%3D
4- A firm is considering three mutually exclusive alternatives as part of a
production improvement program. The alternatives are:
Alternative
A (i=12%)
B (i=10%)
C (i=15%)
Installation Cost (U)
200,000
270,000
190,000
Uniform Annual
30,750
40,500
30,250
Benefit (U)
Useful life in years
12
14
15
Which of the above should be chosen?
Transcribed Image Text:3- The maintenance costs for a bridge with an expected 50 years life are estimated to be ($10,000,000) each year for the first 5 years, followed by ($50,000,000) other costs at year 15, and ($75,000,000) at the year 30, if ( i 10%), what is the annual uniform cost over the entire 50 years? %3D 4- A firm is considering three mutually exclusive alternatives as part of a production improvement program. The alternatives are: Alternative A (i=12%) B (i=10%) C (i=15%) Installation Cost (U) 200,000 270,000 190,000 Uniform Annual 30,750 40,500 30,250 Benefit (U) Useful life in years 12 14 15 Which of the above should be chosen?
Expert Solution
steps

Step by step

Solved in 4 steps with 4 images

Blurred answer
Knowledge Booster
Engineering economics principles
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, civil-engineering and related others by exploring similar questions and additional content below.
Similar questions
  • SEE MORE QUESTIONS
Recommended textbooks for you
Fundamentals Of Construction Estimating
Fundamentals Of Construction Estimating
Civil Engineering
ISBN:
9781337399395
Author:
Pratt, David J.
Publisher:
Cengage,
Traffic and Highway Engineering
Traffic and Highway Engineering
Civil Engineering
ISBN:
9781305156241
Author:
Garber, Nicholas J.
Publisher:
Cengage Learning