Question: What analysis method did Buff use when making this decision? Buff Construction is building a new bridge. They have the option of using concrete or

What analysis method did Buff use when making this decision?

What analysis method did Buff use when making this decision? Buff Construction

Buff Construction is building a new bridge. They have the option of using concrete or steel. See data: Cost of Construction Operations & Maintenance per Life year (in years) Concrete $50M $250,000 70 Steel $40M $500,000 50 i = 5% Buff decided to use steel for this bridge based on the following analysis: Concrete: 50M (A/P,5%,70) 0.05 + 0.25M 0.05 = $56.70M Steel: 40M (A/P,5%,50) + 0.5M 0.05 0.05 = $53.84M What analysis method did Buff use when making this decision? O Capitalized Cost Future Worth Replacement Analysis Benefit Cost Analysis

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