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Contemporary Engineering Economics 6th Edition by Chan Park
Edition 6ISBN: 978-0134105598Contemporary Engineering Economics 6th Edition by Chan Park
Edition 6ISBN: 978-0134105598 Exercise 11
Two methods of carrying away surface runoff water from a new subdivision are being evaluated.
Method A. Dig a ditch. The first cost would be $60,000, and $25,000 of redigging and shaping would be required at five-year intervals forever.
Method B. Lay concrete pipe. The first cost would be $150,000, and a replacement would be required at 50-year intervals at a net cost of $180,000 forever.
At i = 12%, which method is the better one
Method A. Dig a ditch. The first cost would be $60,000, and $25,000 of redigging and shaping would be required at five-year intervals forever.
Method B. Lay concrete pipe. The first cost would be $150,000, and a replacement would be required at 50-year intervals at a net cost of $180,000 forever.
At i = 12%, which method is the better one
Explanation
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Contemporary Engineering Economics 6th Edition by Chan Park
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