Question: Two traffic signal systems are being considered for an intersection. One system costs $32,000 for installation and has an efficiency rating of 178%, requires 28

Two traffic signal systems are being considered for an intersection. One system costs $32,000 for installation and has an efficiency rating of 178%, requires 28 kW power (output), incurs a user cost of $0.24 per vehicle, and has a life of 10 years. A second I system costs $45,000 to install, has an efficiency rating of 90%, requires 34 kW power (output), has a user cost of $0.22 per vehicle, and has a life of 15 years. Annual I maintenance costs are $75 and $100, respectively, = 10% per year. How many vehicles must use the intersection to justify the second system when electricity costs $0.08/kWh?

Step by Step Solution

★★★★★

3.45 Rating (177 Votes )

There are 3 Steps involved in it

1 Expert Approved Answer

Step: 1 Unlock

1 Assume salvage value for each system 0 2 The difference in use... View full answer

Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock

Step: 3 Unlock

Document Format (1 attachment)

929-B-F-R-A (1021).docx

120 KBs Word File

Students Have Also Explored These Related Finance Questions!

Two 10-year bonds are being considered for an investment that may have to be liquidated before the maturity of the bonds. The first bond is a 10-year premium bond with a coupon rate higher than its...

Two 180-horsepower (HP) motors are being considered for installation at a municipal sewage-treatment plant. The first costs $5,800 and has an operating efficiency of 83%. The second costs $4,600 and...

Two 180-horsepower water pumps are being considered for installation in a farm. Financial data for these pumps are as follows: If power cost is a flat 6 cents per kWh over the study period, determine...

Two traffic signal systems are being considered for an intersection. One system costs $32, 000 for installation and has an efficiency rating of 79%. requires 27 kW power (output), incurs a user cost...

Two traffic signal systems are being considered for an intersection. One system costs $35,000 for installation and has an efficiency rating of 75%, requires 26 kW power (output), incurs a user cost...

Two traffic signal systems are being considered for an intersection. One system costs $35,000 for installation and has an efficiency rating of 79%, requires 26 kW power (output), incurs a user cost...

Two traffic signal systems are being considered for an intersection. One system costs $32,000 for installation and has an efficiency rating of 78%, requires 28 kW power (output), incurs a user cost...

11-17. Two traffic signal systems are being considered for an intersection. One system costs $32,000 for installation and has an efficiency rating of 78%, requires 28 kW power (output), incurs a user...

Two traffic signal systems are being considered for an intersection. One system costs $32,000 for installation and has an efficiency rating of 76%, requires 27 kW power (output), incurs a user cost...

Two traffic signal systems are being considered for an intersection. One system costs $33,000 for installation and has an efficiency rating of 80%, requires 26 kW power (output), incurs a user cost...

Biko owns a snowmobile manufacturing business, and Miles owns a mountain bike manufacturing business. Because each business is seasonal, their manufacturing plants are idle during their respective...

Consider a system of two non-interacting identical fermions, each of mass m in an infinty square well Potential of width a. (Take the potential inside the well to be zero and ignae spin). The...

Differentiate. f ( z ) = ( 8 ez ) ( 8 z + ez )

Reconsider the U.S. Treasury Securities data shown in Table B. I. a. Use simple exponential smoothing with the optimum value of A to smooth the data, excluding the last 20 observations (you can find...

Annual profit (P) is the product of total annual sales (S) and profit per unit sold (X); that is, P = X·S. It is desired to know the probability distribution of the random variable P when X...

A new snow making machine utilizes technology that permits snow to be produced in ambient temperature of 70 degrees Fahrenheit or below. The estimated cash flows for the ski resort contemplating this...

A centrifuge is required in a chemical separation process. Two centrifuges (A and B) are available and summarized below. The net annual revenues for centrifuge B are not known. If the MARR is 10% per...

Takeover defenses are designed to benefit A. Stockholders( chose this answer but it was wrong) B. Workers C. Creditors D. Managers

Consider the following two, completely separate. Economies. The expected return and volatility of all stocks in both economies is the same, In the first economy, all stocks move together m dash in...

An investment opportunity requires an outlay of 1 0 , 0 0 0 . It will yield annual returns of 2 , 5 0 0 per annum for each of the next 5 years ( in today s terms ) . If inflation is 2 % and the money...