Answer:
Cost for concerete pavement = $ 90 X 5280
Cost for concerete pavement = $ 475,200
cost for each paved ditch = $ 3 X 5280
cost for each paved ditch = $ 15,840
cost for 2 paved ditch = $ 31,680
cost of three box culverts every mile = $ 9000 X 3
cost of three box culverts every mile = $ 27,000
Total cost for concrete pavement in year 0 = $ 475,200 + $ 31,680 + $ 27,000
Total cost for concrete pavement in year 0 = $ 533,880
Annual maintenance = $ 1800
Annula maitenance in year 5 = $ 1,800 + $ 450 ( $ 2,250)
The cash flow table for design A
Design A
year Cash outflows
0 $533,880
1 $1,800
2 $1,800
3 $1,800
4 $1,800
5 $2,250
6 $1,800
7 $1,800
8 $1,800
9 $1,800
10 $2,250
11 $1,800
12 $1,800
13 $1,800
14 $1,800
15 $2,250
16 $1,800
17 $1,800
18 $1,800
19 $1,800
20 $1,800
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Design B
Cost of pavement for design B = $ 45 X 5280
Cost of pavement for design B = $ 237,600
cost of sodded ditches = $ 1.50 X 5280
cost of sodded ditches = $ 7,920
cost of two sodded ditches = $ 15,840
Cost of three pipe culverts = $ 2,250 X 3
Cost of three pipe culverts = $ 6,750
Cost of replacement culverts = $ 2400 X 3
Cost of replacement culverts = $ 7,200
annual maintenance = $ 2,700
cost of cleaning culverts = $ 225 X 3
cost of cleaning culverts = $ 675
annual ditch maintenance = $ 1.50 X 5280
annual ditch maintenance = $ 7,920
Initial cost of bituminous pavement = $ 237,600 + $ 7,920 + $ 6,750
Initial cost of bituminous pavement = $ 252,270
Annual cost of maintenance = $ 2700 + $ 225 + $ 1.50 X 5280
Annual cost of maintenance = $ 10,845
Year 11 cost = $ 237,600 + $ 7,920 + $ 2400 x 3 ( cost of replacement culverts)
Year 11 cost = $ 252,720
Cash flow table for design B
Design B
year Cash outflows
0 $252,270
1 $10,845
2 $10,845
3 $10,845
4 $10,845
5 $10,845
6 $10,845
7 $10,845
8 $10,845
9 $10,845
10 $10,845
11 $252,720
12 $10,845
13 $10,845
14 $10,845
15 $10,845
16 $10,845
17 $10,845
18 $10,845
19 $10,845
20 $10,845
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b) cash flow equation for design A equivalent wortth = $ 533,880 ( A/P , 6% , 20 years) + $ 1800 + $ 2,250 ( P/A , 6% , 20 years )
Cash flow equation for design B equivalent wortth = $ 252,270 ( A/P , 6% , 20 years) + $ 10,845 + $ 252,720 ( P/A , 6% , 20 years )
Explanation:
