Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Two traffic signal systems are being considered for an intersection. One system costs $34000 for installation and has an efficiency rating of 80% requires 30

Two traffic signal systems are being considered for an intersection. One system costs $34000 for installation and has an efficiency rating of 80% requires 30 kW power (output), incurs a user cost of $.21 per vehicle, and has a life of 12 years. A second system costs $42000 to install, has an efficiency rating of 91%, requires 32kW power (output), has a user cost of $.23 per vehicle, and has a life of 18 years. Annual maintenance costs are $74 and $100, respectively. MARR=8% per year. How many vehicles must use the intersection to justify the 2nd 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 8760 hours/year.

At least what number of vehicles per day must use the intersection to justify the second system?

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

Essentials Of Accounting

Authors: Leslie Breitner, Robert Anthony

11th Edition

0132744376, 978-0132744379

More Books

Students also viewed these Accounting questions

Question

Be straight in the back without blowing out the chest

Answered: 1 week ago

Question

Wear as little as possible

Answered: 1 week ago

Question

Be relaxed at the hips

Answered: 1 week ago