Question
Two traffic signal systems are being considered for an intersection. One system costs $ 29,000 for installation and has an efficiency rating of 77%, requires
Two traffic signal systems are being considered for an intersection. One system costs $ 29,000 for installation and has an efficiency rating of 77%, requires 26 kW power (output), incurs a user cost of $0.24 per vehicle, and has a life of 10 years. A second system costs $48,000 to install, has an efficiency rating of 89%, requires 34 kW power (output), has a user cost of $0.23 per vehicle, and has a life of 17 years. Annual maintenance costs are $70 and $110, respectively. MARRequals = 10% per year. How many vehicles must use the intersection to justify the second system when electricity costs $0.08/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.
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