Question: .11 Using the current specifications, resurfacing a road will cost dollar 1.5M initially, need dollar 120K in annual maintenance, and need to be resurfaced every

.11

.11 Using the current specifications, resurfacing a road will cost dollar 1.5M

Using the current specifications, resurfacing a road will cost dollar 1.5M initially, need dollar 120K in annual maintenance, and need to be resurfaced every 10 years. A proposed new specification is expected to be more resistant to wear. The resurfacing cost will be dollar 2.1M with dollar 90K in annual maintenance and resurfacing every 15 years. Develop a choice table for interest rates from 0 percentage to 25 percentage. If the highway department's interest rate is 6 percentage which specification is preferred

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