The best alternative from the given alternatives.
Answer to Problem 48P
The route
Explanation of Solution
Given for Route 105:
Cost is
Calculation:
Calculate the EUAW for Route 105.
Write the equation for EUAC for Route 105.
Calculate the factor
Here, the present value is P, rate is i, and time is n.
Substitute
Substitute
Substitute
Given for Route 205:
Cost is
Calculations:
Calculate the EUAW for Route 205.
Write the Equation for EUAC for Route 105.
Calculate the factor
Substitute
Substitute
Substitute
Given for Route 305:
Cost is
Calculations:
Calculate the EUAW for Route 305.
Write the equation for EUAC for Route 305.
Calculate the factor
Substitute
Substitute
Substitute
Conclusion:
Here, EUAW for the alternative
Want to see more full solutions like this?
Chapter 6 Solutions
Engineering Economic Analysis
- Principles of Economics (12th Edition)EconomicsISBN:9780134078779Author:Karl E. Case, Ray C. Fair, Sharon E. OsterPublisher:PEARSONEngineering Economy (17th Edition)EconomicsISBN:9780134870069Author:William G. Sullivan, Elin M. Wicks, C. Patrick KoellingPublisher:PEARSON
- Principles of Economics (MindTap Course List)EconomicsISBN:9781305585126Author:N. Gregory MankiwPublisher:Cengage LearningManagerial Economics: A Problem Solving ApproachEconomicsISBN:9781337106665Author:Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike ShorPublisher:Cengage LearningManagerial Economics & Business Strategy (Mcgraw-...EconomicsISBN:9781259290619Author:Michael Baye, Jeff PrincePublisher:McGraw-Hill Education