Select the alternative.
Explanation of Solution
Time period is denoted by n and the interest is denoted by i. Equivalent annual cost (EUAC) of alternate nothing can be calculated as follows.
Equivalent annual cost of alternate nothing is $10,000.
Increasing rate is denoted by f. Equivalent annual cost (EUAC) of alternate culvert can be calculated as follows.
Equivalent annual cost of alternate culvert is $7,688. The equivalent annual cost is lower for the alternate culvert. Thus, select alternate culvert.
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Chapter 12 Solutions
Engineering Economy, Student Value Edition (17th Edition)
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