Using a spreadsheet you have written, by trial and error determine the construction cost of Alternative B in Table 1-5 that will make its total annual cost equal to the total annual cost of Alternative A. With the significant figures given, the costs may be assumed to be "equal" when they are within $1,000 of each other. Note: the interest during construction and inflation prior to construction used in Table 1-5 was 3.00% TABLE 1-5.

 

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TABLE 1-5 Comparison of design alternatives by equivalent costs Cost Items Capital costs Construction cost Engineering Land Legal, fiscal, administrative Interest during construction Subtotal Inflation prior to construction Total capital costs Annualized capital cost Operating and maintenance costs Personnel Power Chemicals Miscellaneous utilities Miscellaneous supplies and materials Annual operating and maintenance costs Total annual costs I Alternative A $6,300,000 945,000 130,000 50,000 189,000 $7,614,000 228,000 $7,842,000 557,000 220,000 120,000 15,000 30,000 50,000 $ 435,000 S 992.000 Equivalent Costs Alternative B $5,300,000 795,000 200,000 80,000 159,000 $6,534,000 196,000 $6,730,000 478,000 290,000 60,000 128,000 30,000 50,000 $ 558,000 $1,036,000 "Adapted from Water Pollution Control Federation, MOP 8. Wastewater Treatment Plant Design Washington DC, 1977. "Cost basis-2006. Engineering News Record Construction Cost Index - 7600 72 "Also called "debt service." Capital cost recovery factor (A/P. 5%, 25)-0.0710 "Annualized capital cost+ annual operating and maintenance costs. TABLE 1-5 Comparison of design alternatives by equivalent costs Cost Items Capital costs Construction cost Engineering Land Legal, fiscal, administrative Interest during construction Subtotal Inflation prior to construction Total capital costs Annualized capital cost Operating and maintenance costs Personnel Power Chemicals Miscellaneous utilities Miscellaneous supplies and materials Annual operating and maintenance costs Total annual costs I Alternative A $6,300,000 945,000 130,000 50,000 189,000 $7,614,000 228,000 $7,842,000 557,000 220,000 120,000 15,000 30,000 50,000 $ 435,000 S 992.000 Equivalent Costs Alternative B $5,300,000 795,000 200,000 80,000 159,000 $6,534,000 196,000 $6,730,000 478,000 290,000 60,000 128,000 30,000 50,000 $ 558,000 $1,036,000 "Adapted from Water Pollution Control Federation, MOP 8. Wastewater Treatment Plant Design Washington DC, 1977. "Cost basis-2006. Engineering News Record Construction Cost Index - 7600 72 "Also called "debt service." Capital cost recovery factor (A/P. 5%, 25)-0.0710 "Annualized capital cost+ annual operating and maintenance costs.

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