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Two traffic signal systems are being considered for an intersection. One system costs $35,000 for installation and has an efficiency rating of 75%, requires 26
Two traffic signal systems are being considered for an intersection. One system costs $35,000 for installation and has an efficiency rating of 75%, requires 26 kW power (output), incurs a user cost of $0.26 per vehicle, and has a life of 8 years. A second system costs $45,000 to install, has an efficiency rating of 88%, requires 37 kW power (output), has a user cost of $0.24 per vehicle, and has a life of 15 years. Annual maintenance costs are
Two traffic signal systems are being considered for an intersection. One system costs $35,000 for installation and has an efficiency rating of 75%, requires 26kW power (output), incurs a user cost of $0.26 per vehicle, and has a life of 8 years. A second system costs $45,000 to install, has an efficiency rating of 88%, requires 37kW power (output), has a user cost of $0.24 per vehicle, and has a life of 15 years. Annual maintenance costs are $75 and $95, respectively. MARR =10% per year. How many vehicles must use the intersection to justify the second system when electricity costs $0.09/k Wh? Assume salvage value for each system equals zero. Project the difference in the user cost as savings for the second system. There are approximately 8,760 hours/year. =Step by Step Solution
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