Compare the two designs on the basis of equivalent worth

Assignment Help Financial Accounting
Reference no: EM132485497

Point 1: A new highway is to be constructed. Design A calls for a concrete pavement costing $90 per foot with a 20-year life; two paved ditches costing $3 per foot each; and three box culverts every mile, each costing $9,000 and having a 20-year life. Annual maintenance will cost $1,800 per mile; the culverts must be cleaned every five yeears at a cost of $450 each per mile.

Point 2: Design B calls for bituminous pavement costing $45 per foot with a 10-year life; two sodded ditches costing $1.50 per foot each; and three pipe culverts every mile, each costing $2,250 and having a 10-year life. The replacement culverts will cost $2,400 each. Annual maintenance will cost $2,700 per mile; the culverts must be cleaned yearly at a cost of $225 each per mile; and the annual ditch maintenance will cost $1.50 per foot per ditch.

Question 1: Compare the two designs on the basis of equivalent worth per mile for a 20-year period. Find the most economical design on the basis of AW and PW if the MARR is 6% per year.

Reference no: EM132485497

Questions Cloud

Integrative nature of the project management domains : Throughout the term, we have focused on the iterative process of planning and the integrative nature of the project management domains.
Explaining the three baselines to sponsor : How would you go about explaining the three baselines to your Sponsor along with their importance/use?
How much more money will edward repay : How much more money will Edward repay compared with what Jorge owes (moral: you want a high FICO score)? Assume monthly compounding of interest
Ev information in status report : You have provided the following EV information in your status report: AC = 12,000, PV = 14,000 and EV = 10,000.
Compare the two designs on the basis of equivalent worth : Compare the two designs on the basis of equivalent worth per mile for a 20-year period. Find the most economical design on the basis of AW
Scope deliverables for the project : How will you work to create these scope deliverables for the project and list 3 good practices to include when creating these.
Why is quality assurance becoming more important : Why is quality assurance becoming more important? What types of jobs are available related to quality assurance, and what qualifications are required for those
Discuss three ways of application for IASB financial : Discuss three ways in which you see application of the IASB's financial reporting conceptual framework is applied within Walmart Inc.
Control costs and measure project performance : Explain how earned value management (EVM) can be used to control costs and measure project performance, and explain why you think it is not used more often.

Reviews

Write a Review

Financial Accounting Questions & Answers

  Did any characteristics of your client change

You are an auditor filing an 8-K Interim Event. Describe your client and what circumstances led you to decide you needed to file this report. Now, in a follow-up post, imagine you need to file an S-1 IPO Registration report on behalf of the same clie..

  What marriage date would you recommend for the loving couple

Neither has any dependents nor itemized deductions. Based only on tax considerations, what marriage date would you recommend for the loving couple? How much would your choice save in taxes?

  Estimate the cost of inventory

Global office supply uses the retail method to estimate ending inventory in its monthly financial statements. The following information is available for the month ended July 31. determine the cost ratio that should be used in estimating the inventory..

  Straight-line amortization method for all intangible assets

In January of 2016, Vega Corporation purchased a patent at a cost of $201,000. Legal and filing fees of $67,000 were paid to acquire the patent. The company estimated a 10-year useful life for the patent and uses the straight-line amortization method..

  Michael corp current assets

As of December 31, 2015, Michael Corp's current assets were $2,000,000. Its current liabilities were $2,000,000.

  What adjustment should chief make to the allowance

How does the use of estimates affect the financial statements of a company and in your opinion, does the use of estimates create opportunities for companies' to manipulate financial reporting?

  Prepare a performance report using spreadsheet software

Prepare a performance report using spreadsheet software, such as Excel. Hint: Read the Weekly Briefing and watch the Performance Report video on this topic.

  Manufactures variety of gasoline-powered

TruCut Mower Company manufactures a variety of gasoline-powered mowers for discount hardware and department stores. TruCut uses a job cost system and treats each customer's order as a separate job. Prepare a complete analysis of all activity in Work-..

  What is the matching principle

Estimation to the balance sheet method at 4%. How much is the difference in net income between the income statement and balance sheet methods?

  Find out the budget for the department assuming that it uses

The department actually completed 5,000 hours of production. Find out the budget for the department assuming that it uses flexible budgeting?

  What factors motivate acquisition transactions

What is qualitative information? What is quantitative information. what factors motivate acquisition transactions? Which are the most important do you think?

  Finished goods inventory at the beginning of the year

W. W. Phillips Company produced 4,000 leather recliners during the year. These recliners sell for $400 each. Phillips had 500 recliners in finished goods inventory at the beginning of the year. At the end of the year, there were 700 recliners in fini..

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd