Water supply for an irrigation system can be obtained from a stream in some nearby mountains....

 

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Water supply for an irrigation system can be obtained from a stream in some nearby mountains. Two alternatives are being considered, both of which have essentially infinite lives, provided proper maintenance is performed. The first is a concrete reservioir with a steel pipe system and the second is an earthen dam with a wooden aqueduct. Below are the costs associated with each. Compare the present worths of the two alternatives, using an interest rate of 9%. Which alternative should be chosen (Perform all calculations using 5 significant figures and round any monetary answers to the nearest dollar}? Concrete Reservoir Earthen Dam First Cost [dollars] Annual Maintenance Costs [dollars] 500,000 230,000 2,350 14,500 Replacing the wood portion of the aqueduct each 15 years N/A 115,000 The cost Concrete Reservoir is (in PW dollars): [2/5] The cost of the Earthen Dam plus Aqueduct is (in PW dollars): [2/5] Which alternative should be chosen (enter either 'Reservoir' or 'Dam'? [1/5] Water supply for an irrigation system can be obtained from a stream in some nearby mountains. Two alternatives are being considered, both of which have essentially infinite lives, provided proper maintenance is performed. The first is a concrete reservioir with a steel pipe system and the second is an earthen dam with a wooden aqueduct. Below are the costs associated with each. Compare the present worths of the two alternatives, using an interest rate of 9%. Which alternative should be chosen (Perform all calculations using 5 significant figures and round any monetary answers to the nearest dollar}? Concrete Reservoir Earthen Dam First Cost [dollars] Annual Maintenance Costs [dollars] 500,000 230,000 2,350 14,500 Replacing the wood portion of the aqueduct each 15 years N/A 115,000 The cost Concrete Reservoir is (in PW dollars): [2/5] The cost of the Earthen Dam plus Aqueduct is (in PW dollars): [2/5] Which alternative should be chosen (enter either 'Reservoir' or 'Dam'? [1/5]

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To compare the present worths of the two alternatives we need to calculate the present worth PW of e... View the full answer