Two traffic signal systems are being considered for an


Question: Two traffic signal systems are being considered for an intersection. One system costs $32,000 for installation and has an efficiency rating of 78%, requires 28 kW power (output), incurs a user cost of $0.24 per vehicle, and has a life of 10 years. A second system costs $45,000 to install, has an efficiency rating of 90%, requires 34 kW power (output), has a user cost of $0.22 per vehicle, and has a life of 15 years. Annual maintenance costs are $75 and $100, respectively. MARR=10% per year. How many vehicles must use the intersection to justify the second system when electricity costs $0.08/kWh?

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Microeconomics: Two traffic signal systems are being considered for an
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