Lecture-22-why unit cost

in this case 35501984 for interest the pv of the cash

Info iconThis preview shows page 1. Sign up to view the full content.

View Full Document Right Arrow Icon
This is the end of the preview. Sign up to access the rest of the document.

Unformatted text preview: The start of the project Is also given. Do the Same to the Concrete Road Road Annual Cost of Concrete Road -$35,501,984/year Compare this to the Black Top Road -$47,713,311/year Which Road is Most Cost Effective? We converted an All Cost Alternatives We Problem with a different lives problem into a unit cost problem into Unit Cost Problems Unit Problems of this type are sometimes Problems called “Total Life Cycle Cost” in highway engineering engineering Most professions have some type of Most arrangement for unit cost arrangement Get all the money into an annual cost Divide the money by the number of units of Divide interest you get (in highways it’s the service year) service Compare the cost/unit Why Do We Do Unit Cost Problems? Problems? Its not really even its own type of problem Its (most are just a...
View Full Document

This note was uploaded on 02/02/2013 for the course ECON 361 taught by Professor Paulbradley during the Spring '13 term at SIU Carbondale.

Ask a homework question - tutors are online