A new highway is to be constructed. Design A calls for...
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A new highway is to be constructed. Design A calls for a concrete pavement costing $70 per foot with a 12-year life; two paved ditches costing $3 per foot each; and three box culverts every mile, each costing $10,000 and having a 12-year life. Annual maintenance will cost $1,800 per mile; the culverts must be cleaned every three years at a cost of $300 each per mile. Design B calls for a bituminous pavement costing $30 per foot with a 6 -year life; three sodded ditches costing $1.30 per foot each; and two pipe culverts every mile, each costing $2,300 and having a 6-year life. The replacement culverts will cost $2,400 each. Annual maintenance will cost $2,700 per mile; the culverts must be cleaned yearly at a cost of $220 each per mile; and the annual ditch maintenance will cost $1.45 per foot per ditch. Compare the two designs on the basis of equivalent worth per mile for a 12-year period. Find the most economical design on the basis of AW and PW if the MARR is 12% per year. Click the icon to view the interest and annuity table for discrete compounding when the MARR is 12% per year
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