Free FE Civil Practice Questions

A transportation agency is evaluating the replacement of an aging steel truss bridge. Option A involves an immediate comprehensive rehabilitation costing 3,200,000, which will extend the bridge's service life by 20 years with annual maintenance costs of 45,000. At the end of 20 years, it will have a net salvage value of 300,000. Option B involves constructing a new precast concrete bridge immediately for 5,500,000, having an expected service life of 40 years, annual maintenance costs of 15,000, and a net salvage value of 500,000. Using a nominal discount rate of 5% compounded annually, determine the Equivalent Uniform Annual Worth (EUAW) of the preferred option (expressed as an annualized cost).