Question: Problem 6-12 (algorithmic) EQuestion Help A new highway is to be constructed. Design A calls for a concrete pavement costing $80 per foot with a
Problem 6-12 (algorithmic) EQuestion Help A new highway is to be constructed. Design A calls for a concrete pavement costing $80 per foot with a 16-year life; three paved ditches costing $5 per foot each; and two box culverts every mile, each costing $8,000 and having a 16 year life. Annual maintenance will cost $1,900 per mile; the culverts must be cleaned every four years at a cost of $450 each per mle. Design B calls for a bituminous pavement costing $50 per foot with a 8-year lfe; two sodded ditches costing $1.70 per foot each; and four pipe culverts every mile, each costing $2,100 and having a 8-year life. The replacement culverts will cost $2,500 each. Annual maintenance will cost $2,700 per mile; the culverts must be cleaned yearly at a cost of $225 each per mile; and the annual ditch maintenance will cost $1.30 per foot per ditch. Compare the two designs on the basis of equivalent worth per mile for a 16-year period. Find the most economical design on the basis of AW and PW if the MARR is 8% per year. Click the icon to view the interest and annuity table for discrete compounding when the MARR is 8% per year. The AW value for Design A is Smi. (Round to the nearest hundreds.)
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