Engineering Project Management & Economic Analysis Assignment
- Show your work when doing calculation and cash flow diagram.Type formulas and make sure in include units. Alternatively, you can write your answer and either scan it or take a picture and insert it into a Word document.
- Submit the assignment in Black Board only (Only MS Word or PDF file. Don't use the textbox in Blackboard to write your answers). No in-class submission.
1. The initial cost of a bridge that is expected to be in place forever is $70 million. Maintenance can he done at 1-, 2-, 3-, or 4-year intervals, but the longer the interval between servicing, the higher the cost. The costs of servicing are estimated at $83,000. $91,000, $125,000, and $1 83,0(X) for intervals of I through 4 years, respectively. What interval should be scheduled for maintenance to minimize the overall equivalent annual cost? The interest rate is 8% per year.
2. The National Highway Traffic Safety Administration raised the average fuel efficiency standard to 35.5 miles per gallon (mpg) for cars and light trucks by the year 2016. The rules will cost consumers an average of $926 extra per vehicle in the 2016 model year. Assume a person purchases a new car in 2016 that gets 35.5 mpg and keeps it for 5 years. If the person drives an average of 1000 miles per month and gets an extra 10 miles per gallon of gasoline, how much will the gasoline have to cost in order for the buyer to recover the extra investment in 5 years at an interest rate of 0.75% per month?
Attachment:- Interest_Table.pdf