Question

Dalton County is planning to construct a bridge across the Carlton river. The first cost of the bridge will be $6682183. Annual maintenance and repairs will be $25129 for the first 5 years, and then will increase to $38744 for each of the next 10 years. For the final 5 years, the annual maintenance and repairs will increase again to $54387 per year. A major overhaul of $429334 will be performed at the end of year 9. Using an interest rate of 6%, what is the equivalent uniform annual cost for the 20-year period?

Answer 1

@freckles

Answer 2

i have a solution...

Answer 3

give me a sec

Answer 4

@mathmale

Answer 5

Your graph is a good one. I see you're calculating all of the $ spent over those 20 years, not uniformly. If and when you end up with a total of all $ spent over this period, and then consider an interest rate of 6%, you'd attempt to convert the total spent over 20 years in unequal installments to a string of equal payments over 20 years. Have you considered whether you want to know the present value of this string of regular payments, or what the future value would be at the end of 20 years? You could, of course, calculate the equivalent string of payments for both situations.

Answer 6

Let me look at it some more

Answer 7

if i calculated future value then took the future back to the present I could compare that way?

Answer 8

i am comparing answers with my friends

Answer 9

@mathmale

Answer 10

Can you see if this answer is correct?

Answer 11

Charleston Industries is trying to decide if expanding to a new product line would be worth the investment. The new line is estimated to have annual expenses of $28493 and annual profits of $72871. Charleston will be required to pay an annual product licensing fee beginning at the end of year 4 through the end of year 9. The fee will be $14098 and it will decrease by $743 each year. Charleston estimates the product line will be viable for 16 years.

Charleston uses a MARR of 2% to evaluate investments. What is the equivalent uniform annual worth (EUAW) of this product line?

Answer 12

^^THere is the question. The other question i posted earlier i think is wrong. I need to redo the problem. As for this one I think I am right.

Answer 13

okay I got 4 right, working on 5. I think i know where i went wrong.