The alternative with the lowest annual cost is the desired choice.

Problem 9-4

A new water line must be constructed from an existing pumping station to a reservoir. Estimates of construction and pumping costs for each pipe size have been made.

Choose alternate with lowest AC

Pipe Size

Estimated Construction Costs

Cost/Hour for Pumping

The annual cost is based on a 16-year life and a desired return on investment before taxes of 10 percent. Which is the most economical pipe size for pumping 4000 hours/year?



180,000 16

1G" Pipe

$100,000 16

12" Pipe

$16G,GGG 16

16,000 10%


6GGG 1G%





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Project Management Made Easy

Project Management Made Easy

What you need to know about… Project Management Made Easy! Project management consists of more than just a large building project and can encompass small projects as well. No matter what the size of your project, you need to have some sort of project management. How you manage your project has everything to do with its outcome.

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