PE Water Resources Practice Questions - PE Civil Water Resources Engineering Exam

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Two stormwater alternatives have equal service life. Alternative 1 has a present worth cost of $1.25 million, while Alternative 2 has a present worth cost of $1.38 million. Ignoring non-cost factors, which option is economically preferred?

Alternative 1 because it has the lower present worth cost Alternative 2 because the higher present worth implies greater long-term value Either option because present worth is only valid for revenues Alternative 2 because lifecycle comparisons require future worth instead

Correct Answer:

Alternative 1 because it has the lower present worth cost

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