A.Maintenance costs for a small bridge with an expected life of 60 years are estimated to be $1,000 each year for the first five years, followed by a $10,000 expenditure in the 15th year and a $10,000 expenditure in year 30. If interest is 5% per year, what is the equivalent uniform annual cost over the entire 60-year period?
B.A traffic control system for 40 intersections is based upon central computer control.
The system is estimated to have 20-year useful life and no scrap value. The
cost elements are:
Engineering and field installation: $1.2 Million
Computer facilities: $0.3 Million
Communication leases: $200,000/year
Maintenance and operation: $300,000/year
What is annual cost of system? What percent of annual cost is attributed to the
communications expenses? Interest is 5%.