Reference no: EM13999821
An old wooden bridge over a bay is in danger of collapse. The highway department is considering two alternatives to alleviate the situation and provide for expected increases in future traffic. One plan is a conventional steel bridge, and the other is a tunnel. The department is familiar with bridge construction and maintenance, but has no experience with maintenance costs for tunnels. The following data have been developed for the bridge:
First cost $17,000,000
Painting every 6 years $1,000,000
Deck resurfacing every 10 years $3,000,000
Structural overhaul after 15 years $4,000,000
Annual maintenance $300,000
The tunnel is expected to cost $24,000,000 and will require repaving every 10 years at a cost of $2,000,000. If both designs are expected to last 30 years with minimal salvage value, determine the maximum equivalent annual amount for maintenance that could be permitted for the tunnel while holding the total equivalent annual cost equal to that of the bridge. The interest rate is 8%
Rent out a vacation home
: You expect to rent out a vacation home on Sanibel Island for $800 a month as an investment. Upkeep is estimated at $3,000 a year. If the current market interest rate is 5 percent, you are willing to pay __________ for the house.
|
Who were asked about globalization
: In a survey, executives who were asked about globalization indicated that __________ was the factor most critical to success
|
Characteristic or focus of microecon
: Which of the following is not a characteristic or focus of microecon?
|
The wage rate and rental rate on capital
: A firm has a production function, q=AL^a K^(1-a), where 0
|
Determine maximum equivalent annual amount for maintenance
: An old wooden bridge over a bay is in danger of collapse. The highway department is considering two alternatives to alleviate the situation and provide for expected increases in future traffic. One plan is a conventional steel bridge, and the other i..
|
What is your future plans
: why did you choose to come to the USA specially, California of Lutheran University? What is your future plans ?
|
Statements model reflects southwest financial condition
: Southwest Sand and Gravel paid $800,000 to acquire 1,000,000 cubic yards of sand reserves. The following statements model reflects Southwest's financial condition just prior to purchasing the sand reserves.
|
Describe an efficient algorithm based on dynamic programming
: At the end of its fifth successful season, some premier league is planning to give an award to the Most Improved Batsman over the five years. For this, an Improvement Index will be computed for each batsman. This is defined as the longest sequence..
|
What is the estimated cost for the entire job
: In a new 55-and-over gated community, light poles and underground cables need to be installed. It is estimated that 25 miles of underground cabling will be needed and that each mile of cabling costs $15,000 (includes labor). A light pole is to be ins..
|