Question: Two traffic signal systems are being considered for an intersection. One system costs $32,000 for installation and has an efficiency rating of 78%, requires 28

Two traffic signal systems are being considered for an intersection. One system costs $32,000 for installation and has an efficiency rating of 78%, requires 28 kW power (output), incurs a user cost of $0.24 per vehicle, and has a life of 10 years. A second 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 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?

Step by Step Solution

★★★★★

3.51 Rating (164 Votes )

There are 3 Steps involved in it

1 Expert Approved Answer

Step: 1 Unlock

1 Assume salvage value for each system 0 2 The difference in ... View full answer

Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock

Step: 3 Unlock

Students Have Also Explored These Related Engineering Economy Questions!

Two 10-year bonds are being considered for an investment that may have to be liquidated before the maturity of the bonds. The first bond is a 10-year premium bond with a coupon rate higher than its...

Two 180-horsepower (HP) motors are being considered for installation at a municipal sewage-treatment plant. The first costs $5,800 and has an operating efficiency of 83%. The second costs $4,600 and...

Two 180-horsepower water pumps are being considered for installation in a farm. Financial data for these pumps are as follows: If power cost is a flat 6 cents per kWh over the study period, determine...

Two traffic signal systems are being considered for an intersection. One system costs $32, 000 for installation and has an efficiency rating of 79%. requires 27 kW power (output), incurs a user cost...

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...

11-17. Two traffic signal systems are being considered for an intersection. One system costs $32,000 for installation and has an efficiency rating of 78%, requires 28 kW power (output), incurs a user...

Two traffic signal systems are being considered for an intersection. One system costs $35,000 for installation and has an efficiency rating of 79%, requires 26 kW power (output), incurs a user cost...

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...

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...

Two traffic signal systems are being considered for an intersection. One system costs $33,000 for installation and has an efficiency rating of 80%, requires 26 kW power (output), incurs a user cost...

Give response to the following: With a CSF of quality, it would seem that effectiveness would be the dominant KPI, but efficiency in online transactional processing could also play a key role in...

Effects of Changes in Receivable Balances on Statement of Cash Flows St. Charles Antique Market reported a net loss of $6,000 for the year ended December 31, 2010. The following items were included...

For adjusted gross income deductions of individual taxpayers that are connected with either a trade or business or a rental activity I reported differently than other for a G . I. deductions reported...

Good business conditions tend to increase the level of investment by firms. true or false.

Wheeling-Pittsburgh Steel is investigating whether it should replace some of its basic oxygen furnace equipment now or wait to do it later. The cost later (i.e., 3 years from now) is estimated to be...

How much can Wells Fargo lend to a developer who will repay the loan by selling 6 view lots at $190,000 each 2 years from now? Assume the bank will lend at a nominal 14% per year, compounded...

How much will be in a high-yield account at the National Bank of Arizona 12 years from now if you deposit $5000 now and $7000 five years from now? The account earns interest at a rate of 8% per year,...

Bill deposits $100 at the end of each year for 13 years into fund A. Seth deposits $100 at the end of each year for 13 years into fund B. Fund A earns an annual effective rate of 15% for the first 5...

The Presley Corporation is about to go public. It currently has aftertax earnings of $7,700,000, and 2,300,000 shares are owned by the present stockholders (the Presley family). The new public issue...

. Record journal entries for the following transactions for FY 2017 and post to the general ledger. As there are relatively few revenues and expenditures, the use of control accounts is not...