Assignment 1 a) LIFE CYCLE COSTS FOR PROPOSED BRIDGE REPLACEMENT STEEL PANEL TRUSS DESIGN Year               Activity                                                                  Cost  0                 Bridge replacement                                             595,000 15                Replace asphalt paving                                       15,000 30               Replace asphalt paving                                        15,000 40               Replace deck, regalvanize trusses,                       306,000 55               Replace asphalt paving                                        15,000 70              Replace asphalt paving                                        15,000 Calculate the present value of the costs  for the above project cash flow with a discounting rate of 5% b)THREE-SPAN PRE-STRESSED GIRDER DESIGN Year                          Activity                                                           Cost 0                             Bridge replacement                                         1,271,000 40                           Repair deck and railings                                  164,000  80                          End of service life                                              0 Calculate the present value of the costs  for the above project cash flow with a discounting rate of 5%

EBK CONTEMPORARY FINANCIAL MANAGEMENT
14th Edition
ISBN:9781337514835
Author:MOYER
Publisher:MOYER
Chapter11: Capital Budgeting And Risk
Section: Chapter Questions
Problem 15P
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Assignment 1

a) LIFE CYCLE COSTS FOR PROPOSED BRIDGE REPLACEMENT STEEL PANEL TRUSS DESIGN

Year               Activity                                                                  Cost

 0                 Bridge replacement                                             595,000

15                Replace asphalt paving                                       15,000

30               Replace asphalt paving                                        15,000

40               Replace deck, regalvanize trusses,                       306,000

55               Replace asphalt paving                                        15,000

70              Replace asphalt paving                                        15,000

Calculate the present value of the costs  for the above project cash flow with a discounting rate of 5%

b)THREE-SPAN PRE-STRESSED GIRDER DESIGN

Year                          Activity                                                           Cost

0                             Bridge replacement                                         1,271,000

40                           Repair deck and railings                                  164,000

 80                          End of service life                                              0

Calculate the present value of the costs  for the above project cash flow with a discounting rate of 5%

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