Two vehicle-sensor devices are being considered for grand parkway toll road. Dev
ID: 2723017 • Letter: T
Question
Two vehicle-sensor devices are being considered for grand parkway toll road. Device A cost dollar 32000 for installation and has efficiency rating of 78percentage, requires 28 kW power (output), incurs a user cost of dollar 0.24 per vehicle, and has a life of 10 years. Device B costs dollar 45000 to install, has an efficiency rating of 90 percentage, requires 34 kW power (output), has user cost of dollar 0.22 per vehicle, and has a life of 15 years. Annual maintenance costs are dollar75 and dollar100, respectively. MARR-10 percentage per year. How many vehicles per year must use the toll road to justify Device B when electricity costs dollar 0.08/kwh?Explanation / Answer
Solution for device B:
Total cost = 45000
life 15 years
Annual maintenance cost for device B = 100
Power cost = 34*.08 = 2.72 per hour = per year = 23827
Annual cost = 23827+100 = 23927
Hence the no of vehicles = 23927/.22*.9
= 120843 should use the toll to justify the device B cost
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