Homework3: A company produces organic products (Fertilizes) and needs to construct a building to store its products. Two options were available to the company: the first option is executing A reinforced concrete structure with a cost of $160,000, and the second choice is building A steel-framed structure with a cost of $60,000. The estimated useful life of the concrete building is 60 years with no need for repair cost for the first ten years of the building's age, while the repair cost for the other years is $1,000 a year. The estimated age of the steel building is 20 years with a repair cost of $1,150 a year. The salvage value of the concrete building and steel building is $40,000 and $6,000, respectively. If the interest rate is 10%, which option is more economic for the company? (Hint: to perform a comparison you need to find the annual equivalent of the uniform payment series).
Homework3: A company produces organic products (Fertilizes) and needs to construct a building to store its products. Two options were available to the company: the first option is executing A reinforced concrete structure with a cost of $160,000, and the second choice is building A steel-framed structure with a cost of $60,000. The estimated useful life of the concrete building is 60 years with no need for repair cost for the first ten years of the building's age, while the repair cost for the other years is $1,000 a year. The estimated age of the steel building is 20 years with a repair cost of $1,150 a year. The salvage value of the concrete building and steel building is $40,000 and $6,000, respectively. If the interest rate is 10%, which option is more economic for the company? (Hint: to perform a comparison you need to find the annual equivalent of the uniform payment series).
Chapter2: Loads On Structures
Section: Chapter Questions
Problem 1P
Related questions
Question
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
Step by step
Solved in 2 steps with 1 images
Knowledge Booster
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.Recommended textbooks for you
Structural Analysis (10th Edition)
Civil Engineering
ISBN:
9780134610672
Author:
Russell C. Hibbeler
Publisher:
PEARSON
Principles of Foundation Engineering (MindTap Cou…
Civil Engineering
ISBN:
9781337705028
Author:
Braja M. Das, Nagaratnam Sivakugan
Publisher:
Cengage Learning
Structural Analysis (10th Edition)
Civil Engineering
ISBN:
9780134610672
Author:
Russell C. Hibbeler
Publisher:
PEARSON
Principles of Foundation Engineering (MindTap Cou…
Civil Engineering
ISBN:
9781337705028
Author:
Braja M. Das, Nagaratnam Sivakugan
Publisher:
Cengage Learning
Fundamentals of Structural Analysis
Civil Engineering
ISBN:
9780073398006
Author:
Kenneth M. Leet Emeritus, Chia-Ming Uang, Joel Lanning
Publisher:
McGraw-Hill Education
Traffic and Highway Engineering
Civil Engineering
ISBN:
9781305156241
Author:
Garber, Nicholas J.
Publisher:
Cengage Learning