Water supply for an irrigation system can be obtained from a stream in some nearby mountains. Two alternatives are beingconsidered, both of which have essentially infinite lives, provided proper maintenance is performed. The first is a concretereservioir with a steel pipe system and the second is an earthen dam with a wooden aqueduct. Below are the costs associatedwith each. Compare the present worths of the two alternatives, using an interest rate of 8%. Which alternative should be chosen{Perform all calculations using 5 significant figures and round any monetary answers to the nearest dollar}?ConcreteReservoir550,0002,250N/AFirst Cost [dollars]Annual Maintenance Costs [dollars]Replacing the wood portion of theaqueduct each 15 yearsThe cost Concrete Reservoir is (in PW dollars):EarthenDam230,00015,000120,000NumberThe cost of the Earthen Dam plus Aqueduct is (in PW dollars): NumberWhich alternative should be chosen (enter either 'Reservoir' or 'Dam'?

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Water supply for an irrigation system can be obtained from a stream in some nearby mountains. Two alternatives are being considered, both of which have essentially infinite lives, provided proper maintenance is performed. The first is a concrete eservioir with a steel pipe system and the second is an earthen dam with a wooden aqueduct. Below are the costs associate with each. Compare the present worths of the two alternatives, using an interest rate of 8%. Which alternative should be cho Perform all calculations using 5 significant figures and round any monetary answers to the nearest dollar}? First Cost [dollars] Annual Maintenance Costs [dollars] Replacing the wood portion of the aqueduct each 15 years Concrete Reservoir 550,000 2,250 N/A Earthen Dam 230,000 15,000 120,000

Water supply for an irrigation system can be obtained from a stream in some nearby mountains. Two alternatives are being considered, both of which have essentially infinite lives, provided proper maintenance is performed. The first is a concrete eservioir with a steel pipe system and the second is an earthen dam with a wooden aqueduct. Below are the costs associate with each. Compare the present worths of the two alternatives, using an interest rate of 8%. Which alternative should be cho Perform all calculations using 5 significant figures and round any monetary answers to the nearest dollar}? First Cost [dollars] Annual Maintenance Costs [dollars] Replacing the wood portion of the aqueduct each 15 years Concrete Reservoir 550,000 2,250 N/A Earthen Dam 230,000 15,000 120,000

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter11: Capital Budgeting Decisions

Section: Chapter Questions

Problem 9PA: Pitt Company is considering two alternative investments. The company requires a 12% return from its...

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