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A large mudslide caused by heavy rains will cost Sabino County ?$950,000 per occurrence in lost property tax revenues. In any given?year, there is one

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A large mudslide caused by heavy rains will cost Sabino County ?$950,000 per occurrence in lost property tax revenues. In any given?year, there is one chance in 200 that a major mudslide will occur.

A civil engineer has proposed constructing a culvert on a mountain where mudslides are likely. This culvert will reduce the likelihood of a mudslide to near zero. The investment cost would be ?$47,000?, and annual maintenance expenses would be ?$1,500 in the first?year, increasing by 4?% per year thereafter. If the life of the culvert is expected to be 17 years and the cost of capital to Sabino County is 8?% per?year, should the culvert be?built?

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Alarge mudslide caused by heavy rains will cost Sahino County $950,000 per occurrence in lost property tax revenues. In any given year, there is one chance in 200 that a major mudslide will occur. Acivil engineer has proposed constructing a culvert on a mountain where mudslides are likely. This culvert will reduce the likelihood of a mudslide to near zero. The investment cost would be $41000, and annual maintenance expenses would be $1,500 in the rst year, increasing by 11% per year thereafter. It the life ofthe culvert is expected to be 17 years and the cost of capital to Sabina County is 8% per year, should the culvert be built? a Click the icon to view the interest and annuity table for discrete compounding when the MARR is 4% per year. a Click the icon to 1view the interest and annuity table for discrete compounding when the MARR is 8% per year. Calculate the EUAC value of a mudslide. EUACnong = $E| (Round to the nearest dollar.) Calculate the EUAC value of building the culvert. EUACwlmn = $D {Round to the nearest dollar.) Based on the EUAC values, the culvert be built. Discrete Compounding; i = 4% Single Payment Uniform Series Compound Compound Sinking Capital Amount Present Amount Present Fund Recovery Factor Worth Factor Factor Worth Factor Factor Factor To Find F To Find P To Find F To Find P To Find A To Find A Given P Given F Given A Given A Given F Given P FIP PIF FIA PIA AIF AIP 1.0400 0.9615 1.0000 0.9615 1.0000 1.0400 1.0816 0.9246 2.0400 1.8861 0.4902 0.5302 1.1249 0.8890 3.1216 2.7751 0.3203 0.3603 1.1699 0.8548 4.2465 3.6299 0.2355 0.2755 1.2167 0.8219 5.4163 4.4518 0.1846 0.2246 1.2653 0.7903 6.6330 5.2421 0. 1508 0.1908 1.3159 0.7599 7.8983 6.0021 0. 1266 0.1666 1.3686 0.7307 9.2142 6.7327 0.1085 0.1485 1.4233 0.7026 10.5828 7.4353 0.0945 0.1345 1.4802 0.6756 12.0061 8.1109 0.0833 0.1233 11 1.5395 0.6496 13.4864 8.7605 0.0741 0.1141 12 1.6010 0.6246 15.0258 9.3851 0.0666 0. 1066 13 1.6651 0.6006 16.6268 9.9856 0.0601 0. 1001 14 1.7317 0.5775 18.2919 10.5631 0.0547 0.0947 15 1.8009 0.5553 20.0236 11.1184 0.0499 0.0899 16 1.8730 0.5339 21.8245 11.6523 0.0458 0.0858 17 1.9479 0.5134 23.6975 12.1657 0.0422 0.0822 18 2.0258 0.4936 25.6454 12.6593 0.0390 0.0790 19 2.1068 0.4746 27.6712 13.1339 0.0361 0.0761 20 2. 1911 0.4564 29.7781 13.5903 0.0336 0.0736 21 2.2788 0.4388 31.9692 14.0292 0.0313 0.0713 22 2.3699 0.4220 34.2480 14.4511 0.0292 0.0692 23 2.4647 0.4057 36.6179 14.8568 0.0273 0.0673 24 2.5633 0.3901 39.0826 15.2470 0.0256 0.0656 25 2.6658 0.3751 41.6459 15.6221 0.0240 0.0640Discrete Compounding; i = 8% Single Payment Uniform Series Compound Compound Sinking Capital Amount Present Amount Present Fund Recovery Factor Worth Factor Factor Worth Factor Factor Factor To Find F To Find P To Find F To Find P To Find A To Find A Given P Given F Given A Given A Given F Given P N FIP PIF FIA PIA AIF AIP 1.0800 0.9259 1.0000 0.9259 1.0000 1.0800 1.1664 0.8573 2.0800 1.7833 0.4808 0.5608 1.2597 0.7938 3.2464 2.5771 0.3080 0.3880 1.3605 0.7350 4.5061 3.3121 0.2219 0.3019 1.4693 0.6806 5.8666 3.9927 0.1705 0.2505 1.5869 0.6302 7.3359 4.6229 0.1363 0.2163 1.7138 0.5835 8.9228 5.2064 0. 1121 0. 1921 1.8509 0.5403 10.6366 5.7466 0.0940 0.1740 1.9990 0.5002 12.4876 6.2469 0.0801 0.1601 2.1589 0.4632 14.4866 6.7101 0.0690 0. 1490 11 2.3316 0.4289 16.6455 7.1390 0.0601 0. 1401 12 2.5182 0.3971 18.9771 7.5361 0.0527 0.1327 13 2.7196 0.3677 21.4953 7.9038 0.0465 0.1265 14 2.9372 0.3405 24.2149 8.2442 0.0413 0.1213 15 3.1722 0.3152 27.1521 8.5595 0.0368 0.1168 16 3.4259 0.2919 30.3243 8.8514 0.0330 0.1130 17 3.7000 0.2703 33.7502 9. 1216 0.0296 0.1096 18 3.9960 0.2502 37.4502 9.3719 0.0267 0. 1067 19 4.3157 0.2317 41.4463 9.6036 0.0241 0. 1041 20 4.6610 0.2145 45.7620 9.8181 0.0219 0. 1019 21 5.0338 0.1987 50.4229 10.0168 0.0198 0.0998 22 5.4365 0. 1839 55.4568 10.2007 0.0180 0.0980 23 5.8715 0.1703 60.8933 10.3711 0.0164 0.0964 24 6.3412 0.1577 66.7648 10.5288 0.0150 0.0950 25 6.8485 0.1460 73.1059 10.6748 0.0137 0.0937

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