build a bridge to access land for its manufacturing plant expansion. If made of normal steel, the bridge would initially cost $38,000. and it should last 13 years. Maintenance (cleaning and painting) will cost $1900 per year. If a more corrosion-resistant steel were used, the annual maintenance cost would be only $180 per year (with the same life). if the firm's cost of money is 13%, what is the maximum amount that should be spend on the corrosion-resistand bridge?

build a bridge to access land for its manufacturing plant expansion. If made of normal steel, the bridge would initially cost $38,000. and it should last 13 years. Maintenance (cleaning and painting) will cost $1900 per year. If a more corrosion-resistant steel were used, the annual maintenance cost would be only $180 per year (with the same life). if the firm's cost of money is 13%, what is the maximum amount that should be spend on the corrosion-resistand bridge?

Fundamentals Of Construction Estimating

4th Edition

ISBN:9781337399395

Author:Pratt, David J.

Publisher:Pratt, David J.

Chapter18: Life-cycle Costing

Section: Chapter Questions

Problem 13RQ

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