A new highway is to be constructed. Design A calls for a concrete pavement costing?$90 per...

60.1K

Verified Solution

Question

Finance

A new highway is to be constructed. Design A calls for aconcrete pavement costing?$90 per foot with a20?-year? life;four paved ditches costing ?$5 per foot?each; and four box culverts every? mile, each costing ?$9,000 andhaving a 20?-year life. Annual maintenance will cost ?$1,700 per?mile; the culverts must be cleaned every five years at a costof?$350 each per mile. Design B calls for a bituminous pavementcosting ?$45 per foot with a 10-year ?life;four sodded ditchescosting ?$1.65 per foot? each; and three pipe culverts every? mile,each costing ?$2,100 and having a 10?-year life. The replacementculverts will cost ?$2,400 each. Annual maintenance will cost?$2,600 per? mile; the culverts must be cleaned yearly at a cost of?$225 each per? mile; and the annual ditch maintenance will cost?$1.45 per foot per ditch. Compare the two designs on the basis ofequivalent worth per mile for a 20?-year period. Find the mosteconomical design on the basis of AW and PW if the MARR is 6?%peryear.

Answer & Explanation Solved by verified expert

4.5 Ratings (935 Votes)

1 mile5280 feetDesignATotal construction cost per mile9055280 501600Culvert Cost for each mile 9000436000Annual Maintenance Cost of highway 1700 per mile for 20 yearie 1949887 of Present ValueCalculation is given belowThe cleaning cost of culvert is 350 See Answer

Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:

Unlimited Question Access with detailed Answers
Zin AI - 3 Million Words
10 Dall-E 3 Images
20 Plot Generations
Conversation with Dialogue Memory
No Ads, Ever!
Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!

Become a Member

Transcribed Image Text

A new highway is to be constructed. Design A calls for aconcrete pavement costing?$90 per foot with a20?-year? life;four paved ditches costing ?$5 per foot?each; and four box culverts every? mile, each costing ?$9,000 andhaving a 20?-year life. Annual maintenance will cost ?$1,700 per?mile; the culverts must be cleaned every five years at a costof?$350 each per mile. Design B calls for a bituminous pavementcosting ?$45 per foot with a 10-year ?life;four sodded ditchescosting ?$1.65 per foot? each; and three pipe culverts every? mile,each costing ?$2,100 and having a 10?-year life. The replacementculverts will cost ?$2,400 each. Annual maintenance will cost?$2,600 per? mile; the culverts must be cleaned yearly at a cost of?$225 each per? mile; and the annual ditch maintenance will cost?$1.45 per foot per ditch. Compare the two designs on the basis ofequivalent worth per mile for a 20?-year period. Find the mosteconomical design on the basis of AW and PW if the MARR is 6?%peryear.