A new water line must be constructed from an existing pumping station to a reser
ID: 2505771 • Letter: A
Question
A new water line must be constructed from an existing pumping station to a reservoir. Estimates of construction and pumping costs for each pipe size have been made:
Pipe Size
Estimated Construction Costs
Cost/hour of pumping
8
Pipe Size
Estimated Construction Costs
Cost/hour of pumping
8
A new water line must be constructed from an existing pumping station to a reservoir. Estimates of construction and pumping costs for each pipe size have been made: The annual cost is based on a 16-year life and a desired rate of return of 10%. Which is the most economical pipe size for pumping 4000 hr/year?Explanation / Answer
Present cost of 8