Compare the two designs on the basis of equivalent worth per mile for a 1212​-year period. Find the most economical design on the basis of AW and PW if the MARR is 1010​% per year.

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A new highway is to be constructed. Design A calls for a concrete pavement costing ​$7575 per foot with a 1212​-year ​life; twotwo paved ditches costing ​$44 per foot​ each; and threethree box culverts every​ mile, each costing ​$7 comma 0007,000 and having a 1212​-year life. Annual maintenance will cost ​$1 comma 7001,700 per​ mile; the culverts must be cleaned every threethree years at a cost of ​$300300 each per mile.

Design B calls for a bituminous pavement costing ​$4040 per foot with a 66​-year ​life; twotwo sodded ditches costing ​$1.551.55 per foot​ each; and twotwo pipe culverts every​ mile, each costing ​$2 comma 1502,150 and having a 66​-year life. The replacement culverts will cost ​$2 comma 3502,350 each. Annual maintenance will cost ​$2 comma 7002,700 per​ mile; the culverts must be cleaned yearly at a cost of ​$235235 each per​ mile; and the annual ditch maintenance will cost ​$1.701.70 per foot per ditch.

Compare the two designs on the basis of equivalent worth per mile for a 1212​-year period. Find the most economical design on the basis of AW and PW if the MARR is 1010​% per year.

LOADING… Click the icon to view the interest and annuity table for discrete compounding when the MARR is 1010​% per year.

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