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Two traffic signal systems are being considered for an intersection. One system costs $32,000 for installation and has an efficiency rating of 76%, requires 27

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Two traffic signal systems are being considered for an intersection. One system costs $32,000 for installation and has an efficiency rating of 76%, requires 27 kW power (output), incurs a user cost of $0.23 per vehicle, and has a life of 12 years. A second system costs $47,000 to install, has an efficiency rating of 87%, requires 34 kW power (output), has a user cost of $0.19 per vehicle, and has a life of 17 years. Annual maintenance costs are $70 and $100, respectively. MARR = 9% per year. How many vehicles must use the intersection to justify the second system when electricity costs $0.11/kWh? 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. Click the icon to view the interest and annuity table for discrete compounding when the MARR is 9% per year. At least vehicles per day must use the intersection to justify the second system. (Round up to the nearest whole number.)

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