A university is considering two alternative types of bleachers for a new gymnasium. One of the two alternatives will be chosen. Assume that the benefits of the gymnasium are the same for botth...


A university is considering two alternative types of bleachers for a new gymnasium. One<br>of the two alternatives will be chosen. Assume that the benefits of the gymnasium are<br>the same for botth construction methods.<br>Alternative A: Wooden bleachers on earth fill<br>The first cost of $110.000 for the earth fill and $100.000 for the wooden bleachers. The<br>annual painting costs are $5,000. The wooden bleachers must be replaced every 30 years<br>at a cost of $100,000. The earth fill will last the entire 120 years<br>Alternative B: Concrete Bleachers<br>The first cost is $350,000. The expected life of the concrete bleachers is 120 years and the<br>annual upkeep costs are $2,500<br>The university uses a MARR of 7%. Which of the two alternatives is better?<br>

Extracted text: A university is considering two alternative types of bleachers for a new gymnasium. One of the two alternatives will be chosen. Assume that the benefits of the gymnasium are the same for botth construction methods. Alternative A: Wooden bleachers on earth fill The first cost of $110.000 for the earth fill and $100.000 for the wooden bleachers. The annual painting costs are $5,000. The wooden bleachers must be replaced every 30 years at a cost of $100,000. The earth fill will last the entire 120 years Alternative B: Concrete Bleachers The first cost is $350,000. The expected life of the concrete bleachers is 120 years and the annual upkeep costs are $2,500 The university uses a MARR of 7%. Which of the two alternatives is better?

Jun 11, 2022
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