Assignment #1 Problem 5- 54 Letter to PennDOT Official (Problem 5-54 is from the
ID: 469579 • Letter: A
Question
Assignment #1 Problem 5- 54 Letter to PennDOT Official (Problem 5-54 is from the book Engineering Economic Analysis 12th edition. In this problem we have to choose between two alternatives using capitalized cost to determine which type of road surface is preferred on a particular section of highway. Alternative A has a capital cost of $957,920 whereas alternative B has a capital cost of $1,008,830. Since the cost of alternative A is less it is preferred. A business letter regarding this choice has to be written.)
To demonstrate that engineering decisions must be communicated to someone in the business world, you are assigned two writing exercises. These assignments are to be one page in length and should convey the following information. Each paragraph accomplishes a specific task as follows:
1.) Orient the reader to what you have done and why
2.) Describe the approach to the problem
3.) Give results of your analysis (not the analysis)
4.) Draw conclusions and recommend action
Write a business letter to an appropriate Penn DOT official as if you were assigned the problem of recommending a paving material for a section of highway. Your goal is to choose between two surface materials based on the data given. You are using the capitalized cost method. Use standard business letter format to report your results. You can invent your own business letterhead if you like. You must limit this letter to one page only.
Explanation / Answer
Penn Dot In Ltd
XYZ street, 34/23 ,
PO headquarters , Iceland 23
To : Manager ( Penn DOT )
Subject : Cost Alternatives for Paving material for a section of Highway
Dear Sir,
This is notify that I have done an analysis to find the cost of paving material for a section highway using capitalized cost method
I have considered alternative A and alternative B on a particulare section of highway. I have considered capitalizeed cost method to anlalyze the cost of both the materials .
I found that Alternative A has capital cost of $957,920 and alternative B has capital cost of $1,008,830.
As Alternative B has more capital cost than alternative A, it is recommended to go for B .
Awaiiting for your response ..
Yours Sincerly,
ABC