None Question 3.2A newly constructed bridge costs $ 32,000,000. The same bridge isestimated to need renovation every 20 years at a cost of $ 13,500,000. Annual repairs andmaintenance are estimated to be $2,700,000 per year.(a) If the interest rate is 12%, determine the capitalized cost of the bridge.(b) Suppose that in (a), the bridge must be renovated every 25 years, not every 20 years.What is the capitalized cost of the bridge?(c) Repeat (a) and (b) with the interest rate of 16 %. What can you say about the effect ofinterest on the results.

(a) Step 1: State the given: First Cost, FC = $32,000,000Economic life, L = 20 yearsRepair Cost, RC…

Answered: Question 3.2 A newly constructed bridge…

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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3. As supervisor of a facilities engineering department, you consider mobile cranes to be critical equipment. The purchase of a new, medium-sized truck-mounted crane is being evaluated. The economic estimates for the two best alternatives are shown in the following table. MARR is at 15% per year. You can use the assumption of repeatability in this case. Alternative B A Capital investment $272.000 $346.000 Annual expenses Useful life (years) | Salvage value 28.800 19,300 6. 25,000 40.000 Show that the same selection is made for the following methods: a. RORAI method
3. As supervisor of a facilities engineering department, you consider mobile cranes to be critical equipment. The purchase of a new, medium-sized truck-mounted crane is being evaluated. The economic estimates for the two best alternatives are shown in the following table. MARR is at 15% per year. You can use the assumption of repeatability in this case. Alternative B A Capital investment $272.000 $346.000 Annual expenses Useful life (years) | Salvage value 28.800 19,300 6. 25,000 40.000 Show that the same selection is made for the following methods: a. RORAI method b. AWC method c. EUAC method
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a company is considering the purchase of a new Lathe, where there are 3 alternative Lathes with brands D, E and F with economic value for each Lathe as follows; Lathe Machine D Lathe Machine E Lathe Machine F Initial Cost (Million Rp) 530 540 480 Maintenance Cost (MillionRp) 90 80 100 Residual Value (Million Rp) 60 130 80 Operating Life 10 10 10 Question: Do a Present Worth Analysis to be able to determine the Alternative chosen from the three Generators with MARR = 13%?
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