3 A new highway is to be constructed. Design A calls for a concrete pavement costing $95 per foot with a 20-year life; four paved dtches costing $5 per foot each; and two box culverts every mile, each costing $10,000 and having a 20-yearAnnual maintenance will cost $1,800 per mille: the culverts must be cleaned every five years at a cost of $300 each permDesign B calls for a bituminous pavement costing $35 per foot with a 10-year te two sodded dichas costing $1.50 per foot each and two pipe culverts every mile, each costing $2,250 and having a 10-year te. The replacement ouverts with co$2,450 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 $1.50 per foot per ditchCompare the two designs on the basis of equivalent worth per mile for a 20-year period. Find the most economical design on the basis of AW and PW if the MARR is 10% per yearClick the icon to view the interest and annuity table for discrete compounding when the MARR is 10% per yearThe AW value for Design A is (Round to the nearest hundreds.)

The measure that depicts the equivalent annual worth of all receipts and costs being estimated…

Anew highway is to be constructed. Design A calls for a concrete pavement costing $05 per foot with a 20-y the four peved ditches onting 35 per tot each and two box culverts every mie, each coming $10.000 and having Annual maintenance cost $1,800 per me the ouverts must be cleaned every five years at a cost of $300 each pers Design calls for a bituminous pavement coating $35 per foot with 1.50 per tot each and $2,450 year e two sodded ches of ppe overs ng £2,250 a Naving must be cleaned yearly Compare the signs on the basis of equivalent worth p 20-year period. Find the r W MARR 10% per year Click the icon to view the interest and annuty table for discrete compounding when the MAR 10% per year The A value for Design A is Round to the nearest hundreds)

Anew highway is to be constructed. Design A calls for a concrete pavement costing $05 per foot with a 20-y the four peved ditches onting 35 per tot each and two box culverts every mie, each coming $10.000 and having Annual maintenance cost $1,800 per me the ouverts must be cleaned every five years at a cost of $300 each pers Design calls for a bituminous pavement coating $35 per foot with 1.50 per tot each and $2,450 year e two sodded ches of ppe overs ng £2,250 a Naving must be cleaned yearly Compare the signs on the basis of equivalent worth p 20-year period. Find the r W MARR 10% per year Click the icon to view the interest and annuty table for discrete compounding when the MAR 10% per year The A value for Design A is Round to the nearest hundreds)

Managerial Economics: Applications, Strategies and Tactics (MindTap Course List)

14th Edition

ISBN:9781305506381

Author:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris

Publisher:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris

Chapter17: Long-term Investment Analysis

Section: Chapter Questions

Problem 10E

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