Question

Question 2. Total 20 marks) In order to cross a busy road in Section 9, Shah Alam, near Plaza Masalam, the Local Authority Planning Department is considering two schemes. Scheme 1 is building an underpass. Scheme 2 is constructing an overhead bridge. The following are the estimated costs and lives concerning both schemes Scheme 1 Underpass USS 250,000USS 300,000 USS 15,500 Scheme 2 Overhead bridge Initial cost of structure Initial cost of associated earthworks Annual Maintenance Cost of pumping surface water USS 750 drainage per year Life of structure Life of associated earthworks Perpetual USS 15,000 US$ 100,000 US 50,000 Nil 30 years 15 years Perpetual Compare the equivalent annual cost of each scheme with a rate of interest of 8 per cent per annum. [CO2-PO12-C51

Answer 1

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