Answer Happy

A new highway is to be constructed. Design A calls for a concrete pavement costing $85 per foot with a 12-year life; two paved ditches costing $3 per foot each; and three box culverts every mile, each costing $7,000 and having a 12-year life. Annual maintenance will cost $1,600 per mile; the culverts must be cleaned every three years at a cost of $550 each per mile. Design B calls for a bituminous pavement costing $30 per foot with a 6-year life; three sodded ditches costing $1.70 per foot each; and four pipe culverts every mile, each costing $2,300 and having a 6-year life. The replacement culverts will cost $2,450 each. Annual maintenance will cost $2,600 per mile; the culverts must be cleaned yearly at a cost of $215 each per mile; and the annual ditch maintenance will cost $1.65 per foot per ditch. Compare the two designs on the basis of equivalent worth per mile for a 12-year period. Find the most economical design on the basis of AW and PW if the MARR is 8% per year. Click the icon to view the interest and annuity table for discrete compounding when the MARR is 8% per year. The AW value for Design A is $/mi. (Round to the nearest hundreds.)