Engineering Economy (17th Edition)
17th Edition
ISBN: 9780134870069
Author: William G. Sullivan, Elin M. Wicks, C. Patrick Koelling
Publisher: PEARSON
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Chapter 11, Problem 20P
A bridge is to be constructed now as part of a new road. Engineers have determined that traffic density on the new road will justify a two-lane road and a bridge at the present time. Because of uncertainty regarding future use of the road, the time at which an extra two lanes will be required is currently being studied.
The two-lane bridge will cost $200,000 and the four- lane bridge, if built initially, will cost $350,000. The future cost of widening a two-lane bridge to four lanes will be an extra $200,000 plus $25,000 for every year that widening is delayed. The MARR used by the highway department is 12% per year. The following estimates have been made of the times at which the four-lane bridge will be required:
In view of these estimates, what would you recommend? What difficulty, if any, do you have in interpreting your results? List some advantages and disadvantages of this method of preparing estimates.
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A bridge is to be constructed now as part of a new road. Engineers have determined that traffic density on the new road will justify a two-lane road and a bridge at the present time. Because of uncertainty regarding future use of the road, the time at which an extra two lanes will be required is currently being studied.
The two-lane bridge will cost $220,000 and the four-lane bridge, if built initially, will cost $420,000. The future cost of widening a two-lane bridge to four lanes will be an extra $220,000 plus $26,000 for every year that widening is delayed. The MARR used by the highway department is 18% per year. The following estimates have been made of the times at which the four-lane bridge will be required:
A bridge is to be constructed now as part of a new road. Engineers have determined that traffic density on the new road will justify a two-lane road and a bridge at the present time. Because of uncerta.
regarding future use of the road, the time at which an extra two lanes will be required is currently being studied.
The two-lane bridge will cost $210,000 and the four-lane bridge, it built initially, will cost $400,000. The future cost of widering a two-lane bridge to four lanes will be an extra $210,000 plus $23,000 for
year that widening is delayed The MARR used by the highway department is 15% per year. The following estimates have been made of the times at which the four-lane bridge will be required:
4 years
Pessimistic estimate
Most likely estimate
5 years
9 years
Optimistic estimate
In view of these estimates, what would you recommend? List some advantages and disadvantages of this method of preparing estimates
Click the icon to view the interest and annuity table for discrete…
An airline is considering two types of engine systems for use in its planes. Each has the same life and the same maintenance and repair record.
System A costs 5 million and uses 48,000 liters per 1,000 hours of operation at the average load encountered in passenger service.
System B costs 10 million and uses 38,400 liters per 1,000 hours of operation at the same level.
Both engine systems have 3-year lives before any major overhaul. Based on the initial investment, the systems have 10% salvage values. If jet fuel costs 108 a liter, and fuel consumption is expected to increase at the rate of 6% each year due to degrading engine efficiency, which engine system should the firm install? Assume 2,000 hours of operation per year, and a MARR of 10%.
Chapter 11 Solutions
Engineering Economy (17th Edition)
Ch. 11 - Prob. 1PCh. 11 - Refer to Example 11-2. Assuming gasoline costs...Ch. 11 - Prob. 3PCh. 11 - Prob. 4PCh. 11 - Prob. 5PCh. 11 - Prob. 6PCh. 11 - Prob. 7PCh. 11 - Prob. 8PCh. 11 - Prob. 9PCh. 11 - Prob. 10P
Ch. 11 - Prob. 11PCh. 11 - Prob. 12PCh. 11 - Prob. 13PCh. 11 - Prob. 14PCh. 11 - Prob. 15PCh. 11 - Prob. 16PCh. 11 - Prob. 17PCh. 11 - Prob. 18PCh. 11 - Prob. 19PCh. 11 - A bridge is to be constructed now as part of a new...Ch. 11 - An aerodynamic three-wheeled automobile (the Dart)...Ch. 11 - Prob. 23PCh. 11 - Prob. 24SECh. 11 - Prob. 25SECh. 11 - Prob. 26SECh. 11 - Prob. 27SECh. 11 - Prob. 28SECh. 11 - Prob. 29SECh. 11 - Prob. 30FECh. 11 - Prob. 31FECh. 11 - A supermarket chain buys loaves of bread from its...Ch. 11 - A supermarket chain buys loaves of bread from its...Ch. 11 - Prob. 34FECh. 11 - Prob. 35FECh. 11 - Prob. 36FECh. 11 - Prob. 37FECh. 11 - Prob. 38FECh. 11 - Prob. 39FECh. 11 - Prob. 40FECh. 11 - Prob. 41FECh. 11 - Prob. 42FE
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