A company has established 5 pounds of Material J at $2 per pound as the standard for the material in its Product Z. The company
1 answer:
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Answer:
Desing B
<u><em>Total Present worth</em></u> $ 502.485,35
<u><em>Annual worth:</em></u> $ 49,722.003
Option 2:
<u><em>Total Present worth</em></u> $ 666.441,33
<u><em>Annual worth:</em></u> $ 53,845.798
Explanation:
<h2>Desing A</h2>$85 x 5280 = 448,800
$4 x 3 x 5280 = 63,360
$8000 x 4 = <u> 32,000 </u>
total cost: 544,160
Annual cost:
11,800 + 300 = 12,100
PV of the annual maintenance:
C 12,100.00
time 16
rate 0.06
PV $122,281.3328
<u><em>Present worth:</em></u>
total cost to construct 544,160 + maintenance $122,281.33 = 666.441,33
<u><em>Annual worth:</em></u>
PV 544,160
time 16
rate 0.06
C $ 53,845.798
<h2>Desing B</h2>a mile is equivalent to 5,280 foot
paviment $40 x 5,280 = $ 211,200
sood ditched 2 per foot x 5,280 foot per mile x $1.40 = $ 12,038.4
pipe culvert 2,200 x 2 = 4,400
Total value to construct: 227.638,4
PV of maintenance:
replacement 2,400 x 2 = 4,800 (in 8 years)
Maturity $4,800.0000
time 8.00
rate 0.06000
PV 3,011.5794
maintenance $2,900
culverts 2 x $ 230 = $ 460
ditch 1.45 x 5,280 x 2 = $ 15,312
Total yearly cost: 18.672
PV of this annuity over 16 years:
C 18,672.00
time 16
rate 0.06
PV $188,697.2765
PV of the replacement bituminous concrete
Maturity $211,200.0000
time 16.00
rate 0.06000
PV 83,138.0951
<u><em>Present worth:</em></u>
Total value to construct: $ 227.638,4 +
yearly cost PB $ 188,697.28 +
concrete replacement $ 83,138.0951
culvert replacement: $<u> 3,011.58 </u>
Total Present worth 502.485,35
<u><em>Annual worth:</em></u>
C $ 49,722.003
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