ABE 325 2018 Economics and Standards - KEY
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School
Purdue University *
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Course
325
Subject
Industrial Engineering
Date
Jan 9, 2024
Type
Pages
3
Uploaded by AdmiralWasp3805
ABE 32500 Soil and Water Resources Engineering 1 Economics and Standards Homework #14 (11 pts) 1. (2 pts) You take out a 10-year loan at 5% interest to pay for a $150,000 tractor. How much do you pay annually including interest over the life of the loan? How much interest do you pay on this loan? Using the amoritization table you get: 0.13 * $150,000 = $19,500 Interest is total payments minus original cost: 10 x $19,500 - $150,000 = $45,000 2. (2 pts) Use the techniques described in the video on Present Worth Analysis (
https://www.youtube.com/watch?v=4rZ-DPszlZE
) to determine which of the two systems described are more cost-effective over a 20 year life span given 7% annual interest: (A) A concrete lined channel that will cost $35,000 to build, must be resealed every year at a cost of $500, has an expected life-span of 20 years at which time is can be crushed and sold for $2,000 as fill material. (B) An earth lined channel that will cost $15,000 to build, must be mowed annually at a cost of $1,000, and dredged every 5 years at a cost of $8,000 per event. ࠵?
!
= −35,000 − 500 (
(1.07)
"#
− 1
0.07(1.07)
"#
. +
2,000
(1.07)
"#
= −$39,780.17
࠵?
$
= −15,000 − 1000 (
(1.07)
"#
− 1
0.07(1.07)
"#
. −
8,000
(1.07)
%
−
8,000
(1.07)
&#
−
8,000
(1.07)
&%
−
8,000
(1.07)
"#
= −$40,331.62
P
A
the concrete lined channel is slightly more cost effective (present worth is less) than P
B
the earth lined channel. 3. (2 pts) A farmer is contemplating adding irrigation to his fields at an added cost of $175 / acre / year. The expected yield benefit for the local Maumee soils is 35 bushels / acre, and the farmer expects to get $3.75 / bushel / year. Calculate the breakeven yield and the breakeven price. Would you advise the farmer to move forward with the investment in irrigation? Breakeven yield = $175 / $3.75 = 46.7 bushels / acre Breakeven price = $175 / 35 = $5.00 /bushel Cost of the irrigation system will require higher than projected price, or yield boost to be cost effective. Do not recommend for the farmer.
ABE 32500 Soil and Water Resources Engineering 2 5. (3 pts) Estimate the cost to construct a 2 acre pond with average depth of 10 ft on a sparsely forested property. You have a large excavator with a 4 cubic yard bucket. After excavation you must install an erosion control blanket to cover the pond rim to a width of 5 feet. Material must be removed from site. Use the 2015 engineering pricing guide for Howard County (posted to Blackboard under Term Project -> Cost Estimation Resources), and Figure A.17 from the Means Heavy Construction Handbook (same location). 6. (2 pt) Complete the vocabulary portion of the home on Blackboard. Pond area
2 acres
9680 square yards
4840 square yards to acre
87120 square feet
9 square feet per square yard
Pond depth
10 ft
Pond volume
20 acre-ft
32267 cubic yards
1613.33 cubic yards per acre-ft
871198 cubic feet
27 cubic feet per cubic yard
Excavator
Large
Bucket
4 cubic yards
Pond perimeter
1181 ft
assume square pond
393.5 yards
1046 ft
assume circular pond
348.8 yards
Site Preparation Costs
Clearing
3,370.00
$ per acre
from 2015 guide for clearing sparse stand
Total for clearing
6,740.00
$ Excavation Costs
Excavation cost
3.92
$ per cubic yard
from 2015 guide for clearing sparse stand
Removal cost
41.00
$ per cubic yard
from 2015 guide for clearing sparse stand
material total
1,449,415.67
$ total for all removal
Excavation rate
330 cubic yards per hour
from Means Appendix A.17, assuming common earth
Large Excavator
162.00
$ per hour
from 2015 guide for large excavator
Excavation time
97.8 hours
Excavation time costs
15,839.97
$ Erosion blanket installation
Width of blanket
2 yards
erosion control blanket
2.00
$ per square yard
from 2015 guide for installed erosion blanket
blanket area
787.1 square yards
square pond
697.5 square yards
circular pond
installation cost
1,574.19
$ square pond
1,395.09
$ circular pond
Total estaimted installation cost
1,473,569.83
$ square pond
1,473,390.73
$ circular pond
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