Lecture-22-why unit cost

The unit cost solution the pick an interest rate and

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Unformatted text preview: nterest rate and discount a full life cycle of each roads costs back to the start of the road life. 0 1 2 7 8 9 10 11 12 $200,000 $10,000,000 $20,000,000 $30,000,000 $40,000,000 $200,000,000 -$620,651,717 $120,000,000 17 18 19 20 21 $200,000 $10,000,000 $20,000,000 $30,000,000 $40,000,000 Interest Rate 4.5% for tax free bonds Convert to Annual Cost Convert Stretch this money into equal annual Payments Over the Life of the Road -$620,651,717* A/P4.5,20 = -$47,713,311/year 0.07688 Lets Do This With Class Assistant on the Concrete Highway! Concrete 0 1 23 8 13 18 23 28 33 $200,000 $200,000 $150,000,000 -$187,000,000 each 38 43 48 $200,000 $150,000,000 Go to the Cash Flow Analyzer Section Section Set in our 4.5% Interest rate Set it for annual compounding Enter the Cash...
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