Zcr

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?

ANSWER

Pipe

180,000 16

1G" Pipe

$100,000 16

12" Pipe

$16G,GGG 16

16,000 10%

12,000

6GGG 1G%

10,160

12,7GG

20,320

Li AC

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Project Management Made Easy

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