Lecture-22-why unit cost

Saga after 20 total years of surface the roadbase

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: years of surface the roadbase would fail After and the entire road will have to be ripped up and rebuilt at a cost of $455,000,000. at IDOTS Dilemma IDOTS Which type of highway should they build? What Kind of Problem does this look What like? like? All Cost Alternatives The Classic Problem The We have an All Cost Alternatives We Problem with an Unequal Lives Landmine Landmine 50 year concrete highway 20 year asphalt highway Standard Solution One Turn the long lived asset in for salvage How does one role up and resell a highway with How 30 years of life left? 30 Standard Solution Two Standard Replace the low cost alternative to match Replace the life of the long lived alternative the To get a common life for 20 and 50 years we To need a 100 year road plan need Is that realistic? The Unit Cost Solution The Pick an i...
View Full Document

Ask a homework question - tutors are online