Gillian has developed estimates for strengthening the undercarriage on a medium-use, 70-year-old bridge for which there is no budget to replace the bridge for the next 5 years. Estimates are P = $800,000, S = 0, maintenance cost, M&O = $10,000 per year, n = 5 years. Use a spreadsheet and MARR of 2% per year to do the following:
(a) Determine what the project will cost in PW terms.
(b) During the analysis, Gillian learned that some 25 similar projects had been completed over the last 10 years. With the help of her supervisor, Gillian obtained the information below on the first cost, P, and maintenance cost, M&O, for these projects. Repeat the PW evaluation using expected values for these two estimates. Is PW higher or lower than the value in part (a)?
 FIGURE 1.png)
 ANSWER.png)
You might also like to view...
The rubber of a seal must be “____________________,” that is, the lip of the seal must be soft and springy.
Fill in the blank(s) with the appropriate word(s).
What are the five grades of slaughter sows?
What will be an ideal response?
All of the following are common reasons for joining a group except
a. interpersonal attraction. b. group activities. c. identification with group goals. d. instrumental benefits from membership. e. All of these are common reasons for joining a group.
Explain why the top half of a split-wired receptacle is “hot” all the time and the switch-controlled half is on the bottom.
What will be an ideal response?