Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

A city plans to upgrade its storm water management infrastructure by installing new pipes. The installation costs 2.6 million dollars and the annual maintenance cost

image text in transcribed

image text in transcribed

A city plans to upgrade its storm water management infrastructure by installing new pipes. The installation costs 2.6 million dollars and the annual maintenance cost is $28,000. Every 10 years, the system needs to be fully examined which requires a fixed management and material cost of $20,000 and a variable labor cost at the rate of $20/hr. 16 full time (working 8 hours per day) workers will be employed for 50 days for this task. If the infrastructure has a life time of 120 years and the city's interest rate is 3%, (Please round your answer to two decimal places at the million level for both questions, e.g. '1.23' millions) a. what is the capitalized worth of the project (in millions)? Please note that the value could be negative. b) what is the EUAC of the infrastructure in million dollars)

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Engineering Economic Analysis

Authors: Donald Newnan, Ted Eschanbach, Jerome Lavelle

9th Edition

978-0195168075, 9780195168075

More Books

Students also viewed these Finance questions