Maurice Tutor

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    Argosy University/ Phoniex University/
    Nov-2005 - Oct-2011

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    Phoniex University
    Oct-2001 - Nov-2016

Category > Economics Posted 12 May 2018 My Price 6.00

new sewer line

 

9.10      A city engineer must choose between two different routes for a new sewer line. Route 1 is a 20,000-foot gravity line, which includes 8000 feet of tunneling at

$250 per foot. The remaining 12,000 feet will    cost

$80 per foot. The annual maintenance cost is expected to be $2000. Route 2 is a 23,000-foot line requiring a pumping station, which will cost $840K to build and $15K annually to operate and maintain. The sewer line costs $80 per foot and will cost $2100 annually to maintain. The expected life of the station and both lines is 35 years. Using an interest rate of 8%, which route should be chosen?

Answers

Maurice Tutor
(5)
Status NEW Posted 12 May 2018 09:05 PM My Price 6.00

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