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<br />I <br />I <br /> <br />7.0 <br /> <br />ALTERNATIVE EVALUATION AND LIFE CYCLE ANALYSIS <br /> <br />I <br />I <br />I <br />I <br />I <br />I <br />I <br />I <br />I <br />I <br />I <br />I <br />I <br />I <br />I <br />I <br />I <br /> <br />7.1 Life Cycle Analysis <br /> <br />The life cycle analysis is an economic study which will compare the two alternatives using a common <br />time basis. For alternative evaluation purposes a life cycle analysis was performed on each of the <br />alternatives presented in this report. The life cycle analysis was performed for a 20 year life cycle <br />with an inflation rate of 5 percent and an interest rate (time value of money) of 10 percent. The <br />construction, engineering and construction administration costs (see Tables 5.1,5.2 and 6.1) were <br />considered the front end cost of the project. The maintenance costs and cost for future system <br />upgrades were converted to present value for total cost of each alternative. The maintenance and <br />future upgrade costs considered in the life cycle analysis are as follows: <br /> <br />A) Tunnel Alternative <br /> <br />I) Maintenance <br /> <br />In Alternative A-I and B-1, the pipe is exposed and it requires some periodic <br />maintenance. For the purposes of life cycle analysis it was assumed that the pipeline <br />will be coated every five years at a cost of $4,000 for each coating. <br /> <br />The roadway which is to be upgraded during tunnel construction will require <br />regrading and placement of gravel base. It was assumed that the road is regraded <br />twice a year and that the grader will take one day to grade the roadway. It was <br />assumed that two inches of gravel would be added to the access road once every five <br />years. <br /> <br />2) System Upgrade <br /> <br />In order to compare the tunnel alternative with the bypass pipeline alternative, the <br />cost for upgrading the system from the west portal to the existing pipeline at the <br />project terminus point (Station 822+21) needs to be taken into consideration. To <br />accomplish this tunnel, Alternative A will require approximately 1500 feet of 42-inch <br />pipe while Alternative B will only require 800 feet of 42-inch pipe to reach the <br />western project terminus point. The cost for pipe and installation are assumed to <br />be the same as those presented in tables 5.1 and 5.2. <br /> <br />43 <br />