Two traffic signal systems are being considered for an intersection. One system costs $32,000 for installation and

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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 178%, requires 28 kW power (output), incurs a user cost of $0.24 per vehicle, and has a life of 10 years. A second I system costs $45,000 to install, has an efficiency rating of 90%, requires 34 kW power (output), has a user cost of $0.22 per vehicle, and has a life of 15 years. Annual I maintenance costs are $75 and $100, respectively, MARR = 10% per year. How many vehicles must use the intersection to justify the second system when electricity costs $0.08/kWh?
MARR
Minimum Acceptable Rate of Return (MARR), or hurdle rate is the minimum rate of return on a project a manager or company is willing to accept before starting a project, given its risk and the opportunity cost of forgoing other...
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Engineering Economy

ISBN: 978-0132554909

15th edition

Authors: William G. Sullivan, Elin M. Wicks, C. Patrick Koelling

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