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Question No.03 Evaluate and compare the equivalent uniform annual costs in the design of an aqueduct that is assumed to have a perpetual period of service, two alternative locations are proposed for a certain section Location involves a tunnel and flume. The tunnel is estimated to have a first cost of $200,000 and is assumed to be permanent. Its annual upkeep costs are estimated as $500. The fiume will cost $90,000, has an estimated life of 20 years, and is expected to have annual maintenance costs of $2,000. Location K involves a steel pipe line and several miles of concrete- lined earth canal. The pipeline has an estimated first cost of $70,000. an estimated life of 50 years, and an estimated annual maintenance cost of $700. The earth canal will cost $80,000 and is assumed to be permanent. During the first 5 years it is estimated that maintenance on the earth canal will be $5,000 a year, thereafter, it is estimated as $1.000 a year. The concrete lining will cost $40,000: it has an estimated life of 25 years with annual maintenance cost of $300. All salvage values are assumed to be negligible. The stipulated interest rate is 8% Because this is a government project, no income tax difference are involved. (CLO-3) -116-4/1972 Question No.03 Evaluate and compare the equivalent uniform annual costs in the design of an aqueduct that is assumed to have a perpetual period of service, two alternative locations are proposed for a certain section Location involves a tunnel and flume. The tunnel is estimated to have a first cost of $200,000 and is assumed to be permanent. Its annual upkeep costs are estimated as $500. The fiume will cost $90,000, has an estimated life of 20 years, and is expected to have annual maintenance costs of $2,000. Location K involves a steel pipe line and several miles of concrete- lined earth canal. The pipeline has an estimated first cost of $70,000. an estimated life of 50 years, and an estimated annual maintenance cost of $700. The earth canal will cost $80,000 and is assumed to be permanent. During the first 5 years it is estimated that maintenance on the earth canal will be $5,000 a year, thereafter, it is estimated as $1.000 a year. The concrete lining will cost $40,000: it has an estimated life of 25 years with annual maintenance cost of $300. All salvage values are assumed to be negligible. The stipulated interest rate is 8% Because this is a government project, no income tax difference are involved. (CLO-3) -116-4/1972