Midterm: Q1 time-value equivalence 25 · Q2 annual-cost uncertainty
30 · Q3 present-worth comparison 25 · Q4 rate of return and breakeven 20.
Question 2 · Mobile LiDAR unit: Purchase price $72,000; resale
value $18,000 after 5 years; annual service $4,800; energy and maintenance $0.38/km; interest rate 8%.
Annual use is 12,000 km optimistic, 24,000 km most likely, and 36,000 km pessimistic. Use
(A/P,8\%,5)=0.25046 and
(A/F,8\%,5)=0.17046.
Part (a) · 15 points: Compute equivalent annual cost for all three
distance cases and show the cash-flow expression.
Part (b) · 15 points: Using 1–4–1 weights, report one
equivalent annual cost for planning and show your method.
EAC(m)=72{,}000(A/P)+4{,}800+0.38m-18{,}000(A/F)
+15 Weights the three annual-distance inputs 1–4–1, then recalculates equivalent annual cost.
+11 Weights the three equivalent-annual-cost results directly.
+7 Uses the wrong weights, drops a case, or does not reach an estimate.
+4 Sets up a three-point estimate but does not complete it.
+0 No attempt.
Option B merges the +11 response type into +15 for this item only.
Submission 006 · Weights the three equivalent-annual-cost results.
\overline{EAC}=\frac{24{,}324.84+4(28{,}884.84)+33{,}444.84}{6}=\$28{,}884.84/\mathrm{yr}
Submission 011 · Weights annual distance first, then recalculates equivalent annual cost.
\bar{m}=\frac{12{,}000+4(24{,}000)+36{,}000}{6}=24{,}000\ \mathrm{km/yr}
EAC(\bar{m})=19{,}764.84+0.38(24{,}000)=\$28{,}884.84/\mathrm{yr}