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Unformatted text preview: The start of the project
Is also given. Do the Same to the Concrete
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
Problem with a different lives problem
into a unit cost problem
into Unit Cost Problems
Unit Problems of this type are sometimes
called “Total Life Cycle Cost” in highway
engineering Most professions have some type of
arrangement for unit cost
arrangement Get all the money into an annual cost Divide the money by the number of units of
interest you get (in highways it’s the
service Compare the cost/unit Why Do We Do Unit Cost
Problems? Its not really even its own type of problem
(most are just a...
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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.
- Spring '13