The proposed steel bridge has an indefinite life. The initial cost of the bridge is $3,750,000 and annual maintenance costs are estimated to be $25,000. The bridge deck will be resurfaced every 10 years for $900,000 and anti-corrosion paint will be applied every 5 years for $250,000. If the interest rate is 8%, what is the EUAC?
The proposed steel bridge has an indefinite life. The initial cost of the bridge is $3,750,000 and annual maintenance costs are estimated to be $25,000. The bridge deck will be resurfaced every 10 years for $900,000 and anti-corrosion paint will be applied every 5 years for $250,000. If the interest rate is 8%, what is the EUAC?
Fundamentals Of Construction Estimating
4th Edition
ISBN:9781337399395
Author:Pratt, David J.
Publisher:Pratt, David J.
Chapter18: Life-cycle Costing
Section: Chapter Questions
Problem 13RQ
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The proposed steel bridge has an indefinite life. The initial cost of the bridge is $3,750,000 and
annual maintenance costs are estimated to be $25,000. The bridge deck will be resurfaced every
10 years for $900,000 and anti-corrosion paint will be applied every 5 years for $250,000. If the
interest rate is 8%, what is the EUAC?
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