Question

Two alternatives are under consideration for maintenance of a bridge. Select the most cost-effective alternative using present worth analysis. Assume an interest rate of10 percent per year and a design

life of 50 years for each alternative.Alternative A consists of annual maintenance costs of $5,000 per year for the design lifeEXsEpt for: Year 20, in which bridge deck repairs will cost $20,000Year 30, in which a deck overlay and structural repairs will cost $105,000 Alternative B consists of annual maintenance costs of $3,000 per year for the design life except for: Year 20, in which bridge deck repairs will cost $35,000Year 30, in which a deck overlay and structural repairs will cost $85,000

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