Annual Value 



$3,447.45(A/P,7%,30) 



$3,447.45(0.0837) 



$288.55 



b. 



Replace shaft bearings and packing sleeves every 4 years at a cost of $1 K per action (as 

 per Indian River Inlet). For Shinnecock, seven actions will be required in the 30-year 



project life: 









Action 1— P = 



$1 K(P/F,7%,4) 









$1 K(0.7487) 



= 



$748.70 



Action 2--P = 



$1 K(P/F,7%,8) 









$1 K(0.5664) 



= 



$566.40 



Action 3— P = 



$1 K(P/F,7%,12) 









$1 K(0.4264) 



= 



$426.40 



Action 4--P = 



$1 K(P/F,7%,16) 









$1 K(0.3212) 



= 



$321.20 



Action 5— P = 



$1 K(P/F,7 3 /s,20) 









$1 K(0.2420) 



= 



$242.00 



Action 6--P = 



$1 K(P/F,7%,24) 









$1 K(0.1824) 



= 



$182.40 



Action 7--P = 



$1 K(P/F,7%,28) 









$1 K(0.1375) 



= 



$137.50 





Present Value 



= 



$2,624.60 





Annual Value 



= 



$2,624.60(A/P,7%,30) 







= 



$2,624.60(0.0837) 







= 



$219.68 



Air Compressor 



a. Replace compressor every 10 years at a cost of $1.2 K per action (as per Indian River 

 Inlet). For Shinnecock, two actions will be required in the 30-year project life: 



Action 1— P = 



$1.2K(P/F,7%,10) 







$1.2K(0.4915) 



$589.80 



Action 2--P = 



$1.2K(P/F,7%,20) 







$1.2K(0.2420) 



$290.40 





Present Value = 



$880.20 





Annual Value = 



$880.20(A/P,7%,30) 





= 



$880.20(0.0837) 





= 



$73.67 



16 



Appendix I Capital Replacement Costs, Alternative 2 



