Engineering Economy 7th Edition by Leland Blank ,Anthony Tarquin

Exercise 33

A pipeline engineer working in Kuwait for the oil giant BP wants to perform a present worth analysis on alternative pipeline routings-the first predominately by land and the second primarily undersea. The undersea route is more expensive initially due to extra corrosion protection and installation costs, but cheaper security and maintenance reduces annual costs. Perform the analysis for the engineer at 15% per year.